USD/JPY jumps to 111.00 neighbourhood, fresh session tops

  • USD/JPY caught some fresh bids on Monday amid the emergence of some USD buying.
  • Bulls seemed unaffected by sliding US bond yields and the prevalent cautious mood.
  • A sustained move beyond YTD tops will set the stage for a further appreciating move.

The USD/JPY pair spiked to fresh daily tops during the mid-European session, with bulls now eyeing a sustained move beyond the 111.00 round-figure mark.

Following an intraday dip to the 110.60 region, the USD/JPY pair regained positive traction and has now moved well within the striking distance of YTD tops touched last week. The intraday uptick was exclusively sponsored by a sudden pickup in the US dollar demand and seemed rather unaffected by the prevalent cautious mood, which tends to benefit the safe-haven Japanese yen.

Despite mixed signals on the US inflation, investors remain concerned that the Fed will tighten its monetary policy if price pressures continue to intensify. This, to a larger extent, helped offset a fresh leg down in the US Treasury bond yields and continued acting as a tailwind for the greenback, which, in turn, was seen as a key factor lending support to the USD/JPY pair.

There isn't any major market-moving economic data due for release from the US on Monday. Hence, it remains to be seen if bulls are able to capitalize on the move or the USD/JPY pair continues with its struggle to find acceptance above the 111.00 mark. The market focus will remain glued to Friday's release of the closely watched US monthly jobs report – popularly known as NFP.

From a technical perspective, a sustained move beyond the 111.10 region will set the stage for a further near-term appreciating move. The USD/JPY pair might then accelerate the positive momentum towards March 2020 swing highs, around the 111.70 region before eventually aiming back to reclaim the 112.00 mark for the first time since February 2020.

Technical levels to watch


Today last price 110.94
Today Daily Change 0.16
Today Daily Change % 0.14
Today daily open 110.78
Daily SMA20 110.03
Daily SMA50 109.34
Daily SMA100 108.64
Daily SMA200 106.53
Previous Daily High 110.98
Previous Daily Low 110.48
Previous Weekly High 111.12
Previous Weekly Low 109.72
Previous Monthly High 110.2
Previous Monthly Low 108.34
Daily Fibonacci 38.2% 110.67
Daily Fibonacci 61.8% 110.79
Daily Pivot Point S1 110.51
Daily Pivot Point S2 110.25
Daily Pivot Point S3 110.01
Daily Pivot Point R1 111.01
Daily Pivot Point R2 111.25
Daily Pivot Point R3 111.52



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