|

USD/JPY drifts back closer to session lows, around 106.80 level

  • USD/JPY failed to preserve early modest recovery gains to 107.00 mark.
  • Some aggressive USD selling kept a lid on the pair’s attempted recovery.
  • A strong opening in the US equity markets helped limit any deeper losses.
  • Bears need to wait for a sustained breakthrough 106.65-55 support zone.

The USD/JPY pair struggled to capitalize on its intraday bounce to the 107.00 mark and has now retreated to the lower end of its daily trading range.

Following an early uptick to three-week tops, the US dollar witnessed a dramatic turnaround on the first day of the week. This comes amid growing worries about a surge in new coronavirus cases, which benefitted the safe-haven Japanese yen and kept a lid on the USD/JPY pair's early uptick.

The greenback remained depressed and failed to gain any respite following the release of weaker-than-expected Existing Home Sales data, which dropped 9.7% in May. The reading marked a modest recovery from the previous month's -17.8% but missed consensus estimates pointing to a 3% fall.

Bearish traders further took cues from a softer tone surrounding the US Treasury bond yields. However, a strong opening in the US equity markets might help limit any deeper losses for the USD/JPY pair, which, so far, has managed to hold well within a three-day-old trading range.

A sustained break below the 106.65-55 region will confirm a near-term bearish breakdown and set the stage for a further near-term depreciating move for the pair. The pair might then accelerate the fall towards re-testing early May swing lows, around the 106.00 mark.

Technical levels to watch

USD/JPY

Overview
Today last price106.82
Today Daily Change-0.05
Today Daily Change %-0.05
Today daily open106.87
 
Trends
Daily SMA20107.77
Daily SMA50107.46
Daily SMA100108.11
Daily SMA200108.43
 
Levels
Previous Daily High107.06
Previous Daily Low106.77
Previous Weekly High107.64
Previous Weekly Low106.67
Previous Monthly High108.09
Previous Monthly Low105.99
Daily Fibonacci 38.2%106.88
Daily Fibonacci 61.8%106.95
Daily Pivot Point S1106.74
Daily Pivot Point S2106.61
Daily Pivot Point S3106.45
Daily Pivot Point R1107.03
Daily Pivot Point R2107.19
Daily Pivot Point R3107.32

Author

Haresh Menghani

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

More from Haresh Menghani
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD eyes 1.1800 barrier near two-month highs

EUR/USD extends its gains for the second successive session, trading around 1.1780 during the Asian hours on Tuesday. On the daily chart, technical analysis indicates a persistent bullish bias, as the pair moves upward within the ascending channel pattern. Additionally, the 14-day Relative Strength Index at 68.89 sits near overbought, signaling strong demand. RSI remains elevated, which could cap gains if overbought conditions emerge.

GBP/USD knocks ten-week highs ahead of holiday slowdown

GBP/USD found room on the high side on Monday, kicking off a holiday-shortened trading week with a fresh spat of Greenback weakness, bolstering the Pound Sterling into its highest bids in ten weeks. Pound traders are largely brushing off the latest interest rate cut from the Bank of England as the UK’s central bank policy strategy leaves the water murky for rate-cut watchers.

Gold buying remains unabated; fresh all-time peak and counting

Gold builds on the previous day's blowout rally through the $4,400 mark and continues scaling new record highs through the Asian session on Tuesday. Bets for more interest rate cuts by the US Fed, renewed US Dollar selling bias, and rising geopolitical uncertainties turn out to be key factors driving flows towards the bullion. Traders now look to the delayed release of the revised US Q3 GDP print and US Durable Goods Orders for a fresh impetus.

Top Crypto Gainers: Humanity Protocol, Curve DAO, Convex Finance extend bullish trends

Humanity Protocol is up 40% over the last 24 hours while Curve DAO and Convex Finance edge higher by 10% each as the broader cryptocurrency market recovers. The bullish rebound in H, CRV, and CVX gains momentum as it approaches a crucial resistance level. 

Ten questions that matter going into 2026

2026 may be less about a neat “base case” and more about a regime shift—the market can reprice what matters most (growth, inflation, fiscal, geopolitics, concentration). The biggest trap is false comfort: the same trades can look defensive… right up until they become crowded.

XRP steadies above $1.90 support as fund inflows and retail demand rise

Ripple (XRP) is stable above support at $1.90 at the time of writing on Monday, after several attempts to break above the $2.00 hurdle failed to materialize last week. Meanwhile, institutional interest in the cross-border remittance token has remained steady.