USD/JPY jumps to over 1-month tops and retreats, now steady below 108.00 mark

USD/JPY continued scaling higher through the early North American session on Tuesday.
The momentum was supported by speculations about further policy easing by the BoJ.
Sustained USD weakness, worsening US-China trade relations capped any further gains.

Haresh Menghani FXStreet

The USD/JPY pair spiked to levels beyond the 108.00 mark, or over one-month tops in the last hour, albeit quickly retreated few pips thereafter.

The latest optimism over encouraging data on coronavirus vaccine trial weighed heavily on the safe-haven Japanese yen and assisted the pair to gain some follow-through traction for the second straight session on Tuesday.

The intraday selling around the JPY picked up additional pace after the Bank of Japan (BoJ) called for an unscheduled meeting on Friday, which fueled speculations about more extraordinary policy easing measures.

The strong positive momentum lifted the USD/JPY pair to the highest level since April 13. Bulls, however, struggled to find acceptance above the 108.00 mark amid growing concerns over worsening US-China relations.

This coupled with fears about the second wave of coronavirus infections further collaborated towards capping the USD/JPY pair. Meanwhile, a weaker opening in the US equity markets led to a sudden fall of around 25-30 pips in the last hour.

The intraday pullback found some support near the 107.80 region as investors await a fresh catalyst from the Fed Chair Jerome Powell and the US Treasury Secretary Steven Mnuchin's congressional testimony.

Technical levels to watch

USD/JPY

Overview
Today last price	107.87
Today Daily Change	0.53
Today Daily Change %	0.49
Today daily open	107.34

Trends
Daily SMA20	107.07
Daily SMA50	107.74
Daily SMA100	108.47
Daily SMA200	108.29

Levels
Previous Daily High	107.5
Previous Daily Low	107.04
Previous Weekly High	107.77
Previous Weekly Low	106.5
Previous Monthly High	109.38
Previous Monthly Low	106.36
Daily Fibonacci 38.2%	107.33
Daily Fibonacci 61.8%	107.22
Daily Pivot Point S1	107.08
Daily Pivot Point S2	106.83
Daily Pivot Point S3	106.61
Daily Pivot Point R1	107.55
Daily Pivot Point R2	107.76
Daily Pivot Point R3	108.02

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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