USD/JPY flirts with session lows, just above 110.00 mark

  • A subdued USD price action prompted some selling around USD/JPY on Thursday.
  • A generally positive risk tone, uptick in the US bond yields should help limit losses.

The USD/JPY pair remained depressed heading into the European session and was last seen flirting with daily lows, just above the key 110.00 psychological mark.

The pair witnessed some selling on Thursday and for now, seems to have snapped two consecutive days of the winning streak, stalling this week's solid rebound from the vicinity of the 109.00 mark. The downtick lacked any obvious fundamental catalyst and could be solely attributed to some profit-taking amid a subdued US dollar price action. That said, a combination of factors should help limit any deeper losses, rather assist the USD/JPY pair to attract dip-buying at lower levels.

Investors now seemed to set aside worries about the economic fallout from the spread of the highly contagious Delta variant of the coronavirus. This was evident from a further recovery in the global risk sentiment and a generally positive tone around the equity markets, which tends to undermine demand for the safe-haven Japanese yen. This, along with a follow-through uptick in the US Treasury bond yields, should act as a tailwind for the USD and lend some support to the USD/JPY pair.

Hence, it will be prudent to wait for some strong follow-through selling before positioning for the resumption of the recent pullback from the 111.65 area, or YTD tops touched earlier this month. Market participants now look forward to the US economic docket, featuring the releases of the usual Initial Weekly Jobless Claims and Existing Home Sales. This, along with the broader market risk sentiment, the US bond yields and the USD price dynamics might provide some impetus to the USD/JPY pair.

Technical levels to watch


Today last price 110.13
Today Daily Change -0.16
Today Daily Change % -0.15
Today daily open 110.29
Daily SMA20 110.45
Daily SMA50 109.96
Daily SMA100 109.49
Daily SMA200 106.97
Previous Daily High 110.39
Previous Daily Low 109.8
Previous Weekly High 110.7
Previous Weekly Low 109.71
Previous Monthly High 111.12
Previous Monthly Low 109.19
Daily Fibonacci 38.2% 110.16
Daily Fibonacci 61.8% 110.03
Daily Pivot Point S1 109.93
Daily Pivot Point S2 109.57
Daily Pivot Point S3 109.35
Daily Pivot Point R1 110.52
Daily Pivot Point R2 110.75
Daily Pivot Point R3 111.11



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