USD/JPY jumps back above mid-104.00s, lacks follow-through

USD/JPY continued attracting some dip-buying ahead of the 104.00 mark.
A modest bounce in the equity markets undermined the safe-haven JPY.
A sudden pickup in the US bond yields remained supportive of the uptick.

Haresh Menghani FXStreet

The USD/JPY pair recovered over 50 pips from intraday lows and refreshed daily tops, around the 104.65 region during the early North American session.

The pair continued showing some resilience at lower levels and once again managed to attract some dip-buying ahead of the 104.00 round-figure mark, despite a softer tone surrounding the US dollar. Growing wariness about the actual outcome of the US presidential election next week held the USD bulls from placing fresh bets, rather prompted some profit-taking.

The negative factor, to a larger extent, was offset by a goodish rebound in the US equity markets, which undermined demand for the safe-haven Japanese yen. Bullish traders further took cues from a sudden spike in the US Treasury bond yields. This, along with concerns about the potential economic fallout from renewed COVID-19 restrictions helped limit the USD downfall.

Friday's mostly upbeat second-tier US economic data did little to impress the USD bulls or provide any meaningful impetus to the USD/JPY pair. This was evident from the lack of any strong follow-through buying, which warrants some caution for bullish traders and before positioning for any further appreciating move on the last trading day of the week.

Nevertheless, the USD/JPY pair has now reversed a major part of its weekly losses and for now, seems to have formed a strong base near the 104.00 mark. That said, a sustained breakthrough the mentioned support will be seen as a fresh trigger for bearish traders and set the stage for additional weakness, possibly towards testing the 103.10-103.00 region.

Technical levels to watch

USD/JPY

Overview
Today last price	104.54
Today Daily Change	-0.08
Today Daily Change %	-0.08
Today daily open	104.62

Trends
Daily SMA20	105.23
Daily SMA50	105.51
Daily SMA100	106.08
Daily SMA200	107.15

Levels
Previous Daily High	104.73
Previous Daily Low	104.03
Previous Weekly High	105.75
Previous Weekly Low	104.34
Previous Monthly High	106.55
Previous Monthly Low	104
Daily Fibonacci 38.2%	104.46
Daily Fibonacci 61.8%	104.3
Daily Pivot Point S1	104.18
Daily Pivot Point S2	103.76
Daily Pivot Point S3	103.48
Daily Pivot Point R1	104.89
Daily Pivot Point R2	105.16
Daily Pivot Point R3	105.59

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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