USD/JPY clings to modest recovery gains just above 109.00 mark, lacks follow-through

USD/JPY built on the overnight recovery from three-week lows and edged higher on Friday.
Improving risk sentiment weighed on the JPY’s safe-haven status and remained supportive.
The uptick lacked any strong buying interest and warrants some caution for bullish trades.

Haresh Menghani FXStreet

The USD/JPY pair climbed back above the 109.00 mark during the Asian session on Friday, albeit lacked any strong follow-through buying interest.

The pair caught some fresh bids on the last trading day of the week and built on the previous session's late recovery move from three-week lows amid a turnaround in the global risk sentiment, which tends to undermine the Japanese yen's safe-haven demand.

USD/JPY supported by receding fears of coronavirus

The World Health Organization (WHO) on Thursday declared the coronavirus a global health emergency but also backed China's efforts to contain the outbreak. This calmed fears of a global pandemic and helped revive investors' appetite for perceived riskier assets.

Apart from a modest risk-on flow, bullish traders further took cues from a strong pickup in the US Treasury bond yields. This coupled with a mildly positive tone surrounding the US dollar further collaborated to the pair's follow-through recovery on Friday.

Despite the positive move, the pair remained well below weekly tops and capped below 50-day SMA resistance. Hence, it will be prudent to wait for some follow-through strength beyond the mentioned hurdle before positioning for any further appreciating move.

Later during the early North-American session, the US economic docket – featuring the release of Personal Income/Spending data, Core PCE Price Index and Chicago PMI – will now be looked upon to grab some short-term trading opportunities.

Technical levels to watch

USD/JPY

Overview
Today last price	109.05
Today Daily Change	0.14
Today Daily Change %	0.13
Today daily open	108.91

Trends
Daily SMA20	109.39
Daily SMA50	109.21
Daily SMA100	108.75
Daily SMA200	108.45

Levels
Previous Daily High	109.09
Previous Daily Low	108.58
Previous Weekly High	110.22
Previous Weekly Low	109.17
Previous Monthly High	109.8
Previous Monthly Low	108.43
Daily Fibonacci 38.2%	108.78
Daily Fibonacci 61.8%	108.89
Daily Pivot Point S1	108.64
Daily Pivot Point S2	108.36
Daily Pivot Point S3	108.13
Daily Pivot Point R1	109.14
Daily Pivot Point R2	109.36
Daily Pivot Point R3	109.64

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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