USD/JPY hits 10-day lows sub-107 as S&P 500 futures drop over 0.50%

USD/JPY extends losses below 107 as risk-off intensifies.
Yen is gaining ground alongside US dollar on coronavirus fears.
Losses in S&P 500 futures bodes well for the Japanese currency.

Dhwani Mehta FXStreet

USD/JPY is challenging fresh ten-day lows just below the 107 mark, as the bears remain in command amid intensifying risk-off sentiment.

The downbeat market mood is likely to extend into Europe, as reflected by the accelerating losses in the S&P 500 futures. The fresh leg down in the US stock futures is helping boost the safe-haven bids for the yen, which has prompted USD/JPY to breach the 107 threshold.

Meanwhile, the US dollar continues to attract the safe-haven flows against its main peers, collaborating with the weakness in the major. The record rise in coronavirus cases in the US doused hopes of a V-shaped recovery and spooked the investors.

The US Supreme Court’s rulings about President Donald Trump’s financial records added to the uncertainty around the US pollical scenario and dampened the mood further.

Looking ahead, the pair will remain at the mercy of the risk-off flows and virus updates ahead of the US PPI data.

USD/JPY technical levels

The bears eye immediate downside target at 106.75 (daily classic S3), below which the psychological 106.50 level could be tested. To the upside, 107.25 is the level to beats for the bulls. That level is the confluence of the 5-DMA, daily high and pivot point.

USD/JPY additional levels to consider

USD/JPY

Overview
Today last price	106.92
Today Daily Change	-0.26
Today Daily Change %	-0.24
Today daily open	107.2

Trends
Daily SMA20	107.25
Daily SMA50	107.42
Daily SMA100	107.73
Daily SMA200	108.4

Levels
Previous Daily High	107.4
Previous Daily Low	107.1
Previous Weekly High	108.16
Previous Weekly Low	107.04
Previous Monthly High	109.85
Previous Monthly Low	106.08
Daily Fibonacci 38.2%	107.21
Daily Fibonacci 61.8%	107.28
Daily Pivot Point S1	107.07
Daily Pivot Point S2	106.93
Daily Pivot Point S3	106.77
Daily Pivot Point R1	107.37
Daily Pivot Point R2	107.53
Daily Pivot Point R3	107.67

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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