USD/JPY flirts with session lows, around 109.00 mark


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  • USD/JPY edged lower on Thursday and eroded a part of the overnight positive move.
  • Sliding US bond yields weighed on the USD and exerted some pressure on the major.
  • A softer risk tone underpinned the safe-haven JPY and contributed to the selling bias.

The USD/JPY pair traded with a negative bias through the early European session and refreshed daily lows in the last hour, with bears now awaiting sustained weakness below the 109.00 mark.

The pair struggled to capitalize on the previous day's hawkish FOMC minutes-led rebound from one-week lows, around the 108.55 support zone and met with some fresh supply on Wednesday. A modest pullback in the US Treasury bond yields kept a lid on the attempted US dollar recovery from multi-month lows. This, in turn, was seen as a key factor that exerted some downward pressure on the USD/JPY pair.

Bearish traders further took cues from a generally softer tone around the equity markets, which tends to underpin demand for the safe-haven Japanese yen. That said, the downside remains cushioned, at least for the time being, amid hints that the Fed has begun debating on QE tapering. This makes it prudent to wait for some follow-through selling before positioning for any further depreciating move.

Market participants now look forward to the US economic docket, featuring the release of the Philly Fed Manufacturing Index and the usual Initial Weekly Jobless Claims, for some impetus. Apart from this, the US bond yields will also influence the USD price dynamics. Traders will further take cues from the broader market risk sentiment to grab some meaningful trading opportunities around the USD/JPY pair.

Technical levels to watch

USD/JPY

Overview
Today last price 109.11
Today Daily Change -0.12
Today Daily Change % -0.11
Today daily open 109.23
 
Trends
Daily SMA20 108.91
Daily SMA50 109.11
Daily SMA100 107.07
Daily SMA200 106
 
Levels
Previous Daily High 109.34
Previous Daily Low 108.57
Previous Weekly High 109.78
Previous Weekly Low 108.35
Previous Monthly High 110.85
Previous Monthly Low 107.48
Daily Fibonacci 38.2% 109.04
Daily Fibonacci 61.8% 108.86
Daily Pivot Point S1 108.76
Daily Pivot Point S2 108.28
Daily Pivot Point S3 107.99
Daily Pivot Point R1 109.52
Daily Pivot Point R2 109.81
Daily Pivot Point R3 110.28

 

 

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