USD/JPY: Downside stalls near mid-104s amid positive T-yields, S&P 500 futures

  • USD/JPY selling stalls, but not out of the woods yet.
  • Gains in S&P 500 futures, Treasury yields save the day for the bulls.
  • Risk-on flows to keep DXY undermined ahead of US data dump.

USD/JPY is attempting a minor recovery above the midpoint of the 104 level in Asian trading this Wednesday, as the bears take a breather after the 30-pips drop seen in the US last session.

The major retreated from 104.75 highs in the American trading, as the US dollar tumbled across the board on a record rally in the US stocks amid improved economic prospects. The coronavirus vaccine progress and strong US business activity data boosted hopes for a quick economic turnaround. The Biden transition kicking off also joined the broader market optimism.

In the first of Tuesday’s trading, the spot followed the strength in the greenback and the uptick in the S&P 500 futures. Therefore, it can be seen that USD/JPY remains at the mercy of the US dollar dynamics while the risk sentiment remains a key market driver.

At the time of writing, the spot trades at 104.52, adding 0.08% on the day and recovering from a dip to session lows of 104.42. The pause in the overnight sell-off can be attributed to the extension of the rally in the US Treasury yields, which save the day for the bulls.

Meanwhile, the advance in the Asian equities, in the wake of the Wall Street upsurge, also helps put a floor under the major. The yen remains on the offers amid downbeat Japanese corporate service price index data and a 2% rally in the Nikkei 225 index.            

Next of relevance for the major remains a bunch of critical US economic releases due for release later in the NA session. Markets gear up for the US Preliminary Q3 GDP, Initial Jobless Claims, Durable Goods and Core PCE Index among other minority reports.  

USD/JPY technical levels


Today last price 104.52
Today Daily Change 0.08
Today Daily Change % 0.08
Today daily open 104.44
Daily SMA20 104.47
Daily SMA50 104.95
Daily SMA100 105.58
Daily SMA200 106.7
Previous Daily High 104.76
Previous Daily Low 104.15
Previous Weekly High 105.14
Previous Weekly Low 103.65
Previous Monthly High 106.11
Previous Monthly Low 104.03
Daily Fibonacci 38.2% 104.38
Daily Fibonacci 61.8% 104.53
Daily Pivot Point S1 104.14
Daily Pivot Point S2 103.83
Daily Pivot Point S3 103.52
Daily Pivot Point R1 104.75
Daily Pivot Point R2 105.07
Daily Pivot Point R3 105.37



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