USD/JPY hits fresh session tops near 106.50 as risk recovery gathers pace

  • USD/JPY buying regains momentum as risk-on sentiment strengthens.
  • Widening US-Japan 10-year yield spread remains JPY-negative.
  • Next of relevance remains US Housing data and Consumer Sentiment.

The USD/JPY pair picked up fresh bids and hit session highs near 106.50 levels in the European session, as the recovery in the risk sentiment gathered steam, as reflected by the extension of the relief rally in the Treasury yields and S&P 500 futures.      

The optimistic comments on trade by the US President Trump overnight has prompted a positive shift in the risk sentiment and diminished the bids for the safe-havens such as the Yen.

Focus on US data for fresh impetus

The buying interest around the US dollar remains unabated amid receding US recession fears, in the wake of upbeat US retail sales data, further collaborating to the upbeat tone in the spot.

Also, the widening US-Japanese 10-year bond yields favor the ongoing upside momentum, as it weighs negatively on the Japanese currency. The Japanese 10-year bond yields fell to a three-year low earlier today.

Markets now await the US Housing Starts, Building Permits and Michigan Consumer Sentiment Index to determine the next direction in the US dollar. Should the data disappoint, the recession fears are likely to resurface and could hit the risk sentiment once again.

USD/JPY Technical levels


Today last price 106.46
Today Daily Change 0.35
Today Daily Change % 0.33
Today daily open 106.11
Daily SMA20 107.2
Daily SMA50 107.73
Daily SMA100 109.17
Daily SMA200 110.12
Previous Daily High 106.78
Previous Daily Low 105.7
Previous Weekly High 107.09
Previous Weekly Low 105.26
Previous Monthly High 109.01
Previous Monthly Low 107.21
Daily Fibonacci 38.2% 106.37
Daily Fibonacci 61.8% 106.12
Daily Pivot Point S1 105.62
Daily Pivot Point S2 105.12
Daily Pivot Point S3 104.53
Daily Pivot Point R1 106.7
Daily Pivot Point R2 107.28
Daily Pivot Point R3 107.78



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