USD/JPY consolidates in a range, just below mid-106.00s


  • Global growth concerns continue to underpin JPY’s safe-haven demand.
  • Improving risk sentiment seemed to help limit the downside for now.
  • A subdued USD price action does little to provide any meaningful impetus.

The USD/JPY pair extended its sideways consolidative price action at the start of a new trading week and remained well within a narrow trading band below mid-106.00s.

Diverging forces fail to provide any impetus

The pair failed to capitalize on last week's goodish recovery attempted from multi-month lows and continues to be weighed down by mounting concerns about slowing global economic growth, which tends to underpin the Japanese Yen's relative safe-haven demand against its American counterpart.
 
Adding to this, persistent uncertainty over a possible resolution to the prolonged US-China trade disputes, especially after the US President Donald Trump said that he was not ready yet to make a trade deal with China, further collaborated towards keeping a lid on any meaningful up-move for the major.
 
However, the negative factors - to a larger extent - were negated by growing expectations that policymakers would unleash new stimulus, which coupled with a bullish trading sentiment around global equity markets helped limit any immediate downside, at least for the time being.
 
Meanwhile, a subdued US Dollar price action did little to influence the price action as market participants now look forward to latest FOMC meeting minutes for a fresh insight over the central bank's near-term monetary policy outlook, which might help determine the pair's next leg of a directional move.
 
Apart from this, the incoming trade-related headlines might continue to play a key role in influencing the pair's momentum ahead of the next big event risk - the Fed Chair Jerome Powell's scheduled speech at the key Jackson Hole Symposium on Friday.

Technical levels to watch

USD/JPY

Overview
Today last price 106.38
Today Daily Change 0.01
Today Daily Change % 0.01
Today daily open 106.37
 
Trends
Daily SMA20 107.13
Daily SMA50 107.69
Daily SMA100 109.12
Daily SMA200 110.08
Levels
Previous Daily High 106.5
Previous Daily Low 106.03
Previous Weekly High 106.98
Previous Weekly Low 105.05
Previous Monthly High 109.01
Previous Monthly Low 107.21
Daily Fibonacci 38.2% 106.32
Daily Fibonacci 61.8% 106.21
Daily Pivot Point S1 106.1
Daily Pivot Point S2 105.83
Daily Pivot Point S3 105.63
Daily Pivot Point R1 106.57
Daily Pivot Point R2 106.77
Daily Pivot Point R3 107.04

 

 

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