USD/JPY extends recovery, closes in on 111.50

  • Wall Street's main indexes register strong gains on Tuesday.
  • US Dollar Index rebounds to 102 area during American session.
  • US is reportedly very close to finalizing the coronavirus stimulus bill.

The USD/JPY pair gained traction during the American trading hours as the upbeat market mood made it difficult for the JPY to find demand as a safe-haven. As of writing, the pair was trading at 111.40, adding 0.17% on a daily basis.

US stimulus hopes lift market sentiment

Heightened hopes of US lawmakers finally approving the coronavirus economic relief bill on Tuesday provided a boost to major equity indexes in the US. As of writing, the Dow Jones Industrial Average and the S&P 500 were up 7.25% and 6.5%, respectively.

"I believe we're on the five-yard line. It has taken a lot of noise and a lot of rhetoric to get us here," Senate Majority Leader Mitch McConnell said on Tuesday. "Despite all of that, we are very close."

On the other hand, the US Dollar Index (DXY), which dropped all the way to 101.05 earlier in the day, erased a large portion of its daily losses on the back of rising US Treasury bond yields and helped the pair push higher. At the moment, the DXY is still down 0.5% on the day at 102.

The data published by the IHS Markit showed that the economic activity in the US manufacturing sector is expected to contract at a softer pace than anticipated in March.  

US: Markit Manufacturing PMI drops to 49.2 in March (preliminary) vs. 42.8 expected.

Technical levels to watch for


Today last price 111.39
Today Daily Change 0.16
Today Daily Change % 0.14
Today daily open 111.23
Daily SMA20 107.63
Daily SMA50 108.96
Daily SMA100 108.99
Daily SMA200 108.29
Previous Daily High 111.6
Previous Daily Low 109.67
Previous Weekly High 111.51
Previous Weekly Low 105.15
Previous Monthly High 112.23
Previous Monthly Low 107.51
Daily Fibonacci 38.2% 110.86
Daily Fibonacci 61.8% 110.4
Daily Pivot Point S1 110.07
Daily Pivot Point S2 108.91
Daily Pivot Point S3 108.14
Daily Pivot Point R1 112
Daily Pivot Point R2 112.76
Daily Pivot Point R3 113.92



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 


GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 


XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more