USD/JPY: feeling the pull of gravity as S&P 500 futures trim gains

USD/JPY failed to take out the 50-hour moving average (HMA) hurdle in early Asia.
The pair is now losing altitude, possibly tracking the decline in the S&P 500 futures from the highs seen earlier today.

Omkar Godbole FXStreet Contributor

The USD/JPY pair is currently trading at 108.12, having clocked a high of 108.62 in early Asia.

The pair was looking north at Tokyo open, as back then, the S&P 500 futures were reporting a 0.70 percent rise.

Moreover, the sentiment that Sino-US relations are back on track put a bid under the risk assets on Friday, weakening the bid tone around the anti-risk Japanese yen.

The futures, however, have backed off from the highs seen earlier today, pulling the USD/JPY lower. At press time, the S&P 500 futures are reporting a 0.27 percent rise.

The USD/JPY pair could drop well below 108.00 if the futures turn negative. Moreover, the Fed rate outlook also favors the downside in the USD/JPY pair. Fed's Powell, on Friday, signaled that the central bank could pause interest-rate increases if the US economy weakened.

USD/JPY Technical Levels

USD/JPY

Overview:
    Today Last Price: 108.16
    Today Daily change: -30 pips
    Today Daily change %: -0.277%
    Today Daily Open: 108.46
Trends:
    Previous Daily SMA20: 111.24
    Previous Daily SMA50: 112.44
    Previous Daily SMA100: 112.28
    Previous Daily SMA200: 111.1
Levels:
    Previous Daily High: 108.6
    Previous Daily Low: 107.47
    Previous Weekly High: 110.48
    Previous Weekly Low: 104.75
    Previous Monthly High: 113.83
    Previous Monthly Low: 109.55
    Previous Daily Fibonacci 38.2%: 108.16
    Previous Daily Fibonacci 61.8%: 107.9
    Previous Daily Pivot Point S1: 107.75
    Previous Daily Pivot Point S2: 107.04
    Previous Daily Pivot Point S3: 106.62
    Previous Daily Pivot Point R1: 108.88
    Previous Daily Pivot Point R2: 109.3
    Previous Daily Pivot Point R3: 110.01

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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