USD/JPY drifts back closer to session lows, just above 107.00 mark

USD/JPY struggled to preserve its early gains to 1-1/-week-tops amid renewed USD selling.
A weaker tone surrounding the US bond yields further contributed to the intraday pullback.
A modest recovery in the equity markets failed to impress bullish traders or lend any support.

Haresh Menghani FXStreet

The USD/JPY pair has now drifted back to the lower end of its daily trading range, with bears now awaiting a sustained break below the 107.00 round-figure mark.

The pair failed to capitalize on its Asian session bullish spike to 1-1/2-week tops, instead met with some fresh supply near the 107.55 region amid some a broad-based US dollar weakness. The ever-increasing number of coronavirus cases in the US dampened prospects for a swift recovery for the domestic economy and kept the USD bulls on the defensive.

Bearish traders further took cues from a weaker tone surrounding the US Treasury bond yields, which further contributed to the offered tone surrounding the greenback. Meanwhile, a slight recovery in the global risk sentiment, which tends to undermine the safe-haven Japanese yen, did little to lend any support or provide any meaningful impetus to the USD/JPY pair.

Looking at the technical picture, the pair's inability to capitalize on a move beyond a two-week-old trading range clearly points to persistent selling bias at higher levels. However, it will be prudent to wait for some strong follow-through selling below the 106.65-60 horizontal support before positioning for any further near-term depreciating move.

In the absence of any major market-moving economic releases from the US, the broader risk sentiment will influence demand for the safe-haven JPY. This, along with the USD price dynamics will be looked upon for some short-term trading opportunities.

Technical levels to watch

USD/JPY

Overview
Today last price	107.1
Today Daily Change	0.07
Today Daily Change %	0.07
Today daily open	107.03

Trends
Daily SMA20	107.24
Daily SMA50	107.49
Daily SMA100	107.55
Daily SMA200	108.39

Levels
Previous Daily High	107.36
Previous Daily Low	106.94
Previous Weekly High	107.44
Previous Weekly Low	106.67
Previous Monthly High	109.85
Previous Monthly Low	106.08
Daily Fibonacci 38.2%	107.1
Daily Fibonacci 61.8%	107.2
Daily Pivot Point S1	106.86
Daily Pivot Point S2	106.69
Daily Pivot Point S3	106.44
Daily Pivot Point R1	107.28
Daily Pivot Point R2	107.53
Daily Pivot Point R3	107.7

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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