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.

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


Today last price 109.05
Today Daily Change 0.14
Today Daily Change % 0.13
Today daily open 108.91
Daily SMA20 109.39
Daily SMA50 109.21
Daily SMA100 108.75
Daily SMA200 108.45
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



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