USD/JPY finds resistance at 107, still up more than 1% near mid-106s


  • Market sentiment improves on US-China trade headlines.
  • Riot police reportedly pushing back protestors at Hong Kong airport.
  • 10-year US Treasury bond yield adds more than 2% on Tuesday.

The USD/JPY pair gained more than 150 pips in the hour following the United States Trade Representative's (USTR) announcement of the decision to delay additional tariffs on some of the Chinese imports including a variety of consumer electronics. However, after climbing higher toward the 107 mark, the pair retraced a portion of its recent upsurge and was last seen trading at 106.48, still adding 1.15% on a daily basis.

Minutes after China’s Ministry of Commerce said Vice Premier Liu He conducted a phone call with the USTR Lighthizer and Treasury Secretary Mnuchin, USTR's office said they will be delaying the 10% tariffs that had been scheduled to start next month until December 15. With the initial reaction, the 10-year US Treasury bond yield surged higher and was last up more than 2% on the day and Wall Street's main indexes rose sharply with the Nasdaq Composite rising as much as 2.5%.

Risk-on flows dominate markets

The improved risk sentiment weighed on traditional safe-havens such as the JPY and gold and caused them to suffer heavy losses against the USD. Furthermore, this development also ramped up the demand for the Greenback by weakening the probability of the Federal Reserve cutting rates more than once in the remainder of the year. The US Dollar Index rose to a six-day high of 97.80 and is now at 97.72, gaining 0.35% on a daily basis.

Despite this positive development, the latest headlines from Hong Kong hint at a further escalation of the situation with the riot police reportedly using pepper spray to push back protestors at the Hong Kong International Airport, not allowing investors to fully take advantage of the risk-on atmosphere.

Technical levels to watch for

USD/JPY

Overview
Today last price 106.52
Today Daily Change 1.22
Today Daily Change % 1.16
Today daily open 105.3
 
Trends
Daily SMA20 107.43
Daily SMA50 107.85
Daily SMA100 109.3
Daily SMA200 110.23
Levels
Previous Daily High 105.7
Previous Daily Low 105.05
Previous Weekly High 107.09
Previous Weekly Low 105.26
Previous Monthly High 109.01
Previous Monthly Low 107.21
Daily Fibonacci 38.2% 105.3
Daily Fibonacci 61.8% 105.45
Daily Pivot Point S1 105
Daily Pivot Point S2 104.7
Daily Pivot Point S3 104.35
Daily Pivot Point R1 105.65
Daily Pivot Point R2 106
Daily Pivot Point R3 106.3

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Ends five-day losing streak, but bias remains bearish

EUR/USD gained 0.19% on Wednesday, snapping a five-day losing streak, however, the outlook remains bearish as the pair is trading well below the former support-turned-resistance of 1.1162 (Aug. 12 low).

EUR/USD News

GBP/USD: Teasing inverse head-and-shoulders breakout

GBP/USD is flirting with the inverse head-and-shoulders neckline resistance of 1.2165 at press time. An inverse head-and-shoulders is a bullish reversal pattern and its success rate is high when it appears after a notable sell-off.

GBP/USD News

USD/JPY: 106.50 tested amid higher S&P futures, Treasury yields

Following a temporary reversal seen on Tuesday, the USD/JPY pair resume the bullish momentum in Wednesday's Asian trading and tests the 106.50 level, tracking the gains in the US Treasury yields and S&P 500 futures. 

USD/JPY News

Gold: Bulls cheer pullback from 10-day EMA

Following its successful bounce off 10-day exponential moving average (EMA), Gold takes the bids to $1507 during the early Asian session on Wednesday. The yellow metal now heads to Friday’s high around $1528 ahead of questioning the monthly top surrounding $1535.

Gold News

FOMC Minutes July 30-31 Meeting Preview: The Fed vs the markets

The Fed policy that switched to neutral in Jan completed the circle last month with first decrease in the base rate in more than a decade from a 2.50% upper target to 2.25%. Markets expect a second cut at the September 18th FOMC.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •