USD/JPY drops back towards 107.00 as S&P futures turn negative

Risk-on market profile fails to lift USD/JPY above 107.50.
Dollar weakness likely caps further gains ahead of US data, Powell.

Dhwani Mehta FXStreet

The USD/JPY pair turned south in the European trading, having faced rejection once again just below the midpoint of the 107 handle, as the US dollar sheds the overnight gains across the board ahead of the US PPI data and Fed Chair Powell’s speech.

Risk-on sentiment to keep the downside capped

The spot gained over 20-pips in the Asian session amid a risk-on market profile, as indicated by the rally in the regional equities and Wall Street futures amid renewed US-China trade optimism. Further, the risk-on trades fuelled bullish moves in the US Treasury yields across the curve, helping the pair retest Monday’s high at 107.46.

However, the bears continued to guard the 107.50 barrier, supported by a generalized weakness seen in the US currency across its main peers on diminishing safe-haven appeal, as markets cheer the resumption of the US-China trade talks, starting this Thursday - October 10^th.

Meanwhile, the latest leg down in the major can be mainly attributed to fresh selling seen the S&P 500 futures after China’s Foreign Ministry said that they are preparing retaliation to the backlist of the 28 Chinese companies by the US over human rights violation.

The US-China trade headlines will continue to influence the pair ahead of the US PPI and Fed Chair Powell’s speech.

USD/JPY Technical levels to watch

USD/JPY

Overview
Today last price	107.16
Today Daily Change	-0.08
Today Daily Change %	-0.07
Today daily open	107.24

Trends
Daily SMA20	107.7
Daily SMA50	106.96
Daily SMA100	107.68
Daily SMA200	109.09

Levels
Previous Daily High	107.47
Previous Daily Low	106.65
Previous Weekly High	108.48
Previous Weekly Low	106.48
Previous Monthly High	108.48
Previous Monthly Low	105.74
Daily Fibonacci 38.2%	107.16
Daily Fibonacci 61.8%	106.97
Daily Pivot Point S1	106.77
Daily Pivot Point S2	106.31
Daily Pivot Point S3	105.96
Daily Pivot Point R1	107.59
Daily Pivot Point R2	107.93
Daily Pivot Point R3	108.4

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.