USD/JPY fades a spike to 110.80, focus on US data

Unable to sustain the upside, despite risk-on, as weaker US dollar weighs.
Technical set up points to further downside bias, a test of 110.00 likely.

Dhwani Mehta FXStreet

The USD/JPY pair extends its overnight descent in the Asian trading and tested the 110.50 level, with supply capping the recovery attempts near 110.85 region.

Despite moderate risk-on sentiment prevalent across the financial markets in Asia, as reflected by the oil-price rebound, a rally in Treasury yields and mostly higher Asian equities, the spot remains exposed to downside risks amid a broadly weaker US dollar.

The US dollar index drops -0.16% to fresh five-day lows of 96.33, as the sentiment remains weighed down by the US political risks, in light of the partial US government shutdown and President Trump’s criticism of the Fed.

Meanwhile, the year-end flows in the Yen keep the safe-haven buoyed, as markets shrug-off downbeat Japanese CPI and industrial output data released earlier today. Also, the Bank of Japan (BoJ) Summary of Opinions (December) also had little impact on the Yen markets.

The focus now shifts towards the US macro updates due later in the NA session for fresh trading incentives. The US pending homes sales and new home sales data will be published among other minority reports.

USD/JPY Technical Levels

USD/JPY

Overview:
    Today Last Price: 110.62
    Today Daily change: -37 pips
    Today Daily change %: -0.333%
    Today Daily Open: 110.99
Trends:
    Previous Daily SMA20: 112.44
    Previous Daily SMA50: 112.83
    Previous Daily SMA100: 112.38
    Previous Daily SMA200: 110.99
Levels:
    Previous Daily High: 111.38
    Previous Daily Low: 110.45
    Previous Weekly High: 113.52
    Previous Weekly Low: 110.81
    Previous Monthly High: 114.25
    Previous Monthly Low: 112.3
    Previous Daily Fibonacci 38.2%: 110.81
    Previous Daily Fibonacci 61.8%: 111.03
    Previous Daily Pivot Point S1: 110.5
    Previous Daily Pivot Point S2: 110.01
    Previous Daily Pivot Point S3: 109.57
    Previous Daily Pivot Point R1: 111.43
    Previous Daily Pivot Point R2: 111.87
    Previous Daily Pivot Point R3: 112.36

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.

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