USD/JPY is now down over 40 pips from Asian session highs


  • USD/JPY drops despite upbeat China data and dismal Japanese data. 
  • Yen may be drawing bids due to losses in the US stock futures. 

The USD/JPY pair is trading in the red near 107.68 at press time, having put in a session high of 108.16 two hours ago. 

Data released early Wednesday was supportive of risk assets. China's Caixin Manufacturing PMI rose to 51.2 in June, the fastest pace of growth since December, and up from May’s 50.7. 

The uptick in yen also looks confounding given the Bank of Japan's "tankan" released early Wednesday showed the pessimistic mood among the Japanese manufacturers’ pessimism worsened to levels not seen in over 10 years in the second quarter. 

Further, the US 10-year yield has risen by over two basis points to 0.677% in the USD-positive manner. 

While it is difficult to pin down the exact cause for the decline, one may argue that the anti-risk yen is drawing bids due to the losses in the US stock futures. At press time, the futures tied to the S&P 500 are reporting a 0.28% drop. 

In addition, the rising number of coronavirus cases in the US may be forcing investors to take shelter under haven assets. Virus cases in the US jumped by more than 46,000 on Tuesday, according to Reuters. 

Looking forward, the focus remains on the broader market sentiment. The pair will likely extend the decline to 50-day simple moving average support at 107.31 if the European equities print losses. During the US session, the focus would be on the US ISM Manufacturing data for June. 

Technical levels

USD/JPY

Overview
Today last price 107.69
Today Daily Change -0.24
Today Daily Change % -0.22
Today daily open 107.93
 
Trends
Daily SMA20 107.56
Daily SMA50 107.4
Daily SMA100 107.94
Daily SMA200 108.41
 
Levels
Previous Daily High 107.98
Previous Daily Low 107.52
Previous Weekly High 107.45
Previous Weekly Low 106.08
Previous Monthly High 109.85
Previous Monthly Low 106.08
Daily Fibonacci 38.2% 107.81
Daily Fibonacci 61.8% 107.7
Daily Pivot Point S1 107.64
Daily Pivot Point S2 107.35
Daily Pivot Point S3 107.18
Daily Pivot Point R1 108.1
Daily Pivot Point R2 108.27
Daily Pivot Point R3 108.56

 

 

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures