USD/JPY: Keeps gains below 109.50 on subdued USD

USD/JPY limits gain in the early European session.
The US Dollar Index remained depressed below 91.40.
Risk aversion helps the pair hold onto constructive bids.

Rekha Chauhan Independent Analyst

The USD/JPY pair is accumulating mild gains in the early European session. The pair quickly recovered from the intraday lows of 109.19 and refreshed the session high near 109.40, thus marking a narrow trading range for the pair in the absence of immediate catalysts.

At the time of writing, the USD/JPY pair is trading at 109.40, up 0.06% on the day.

The subdued performance of the US dollar index (DXY) is attributed to the pair’s non-performance. The index remains dressed near daily highs of 109.40 following the lack of traction in US Treasury yields with minimal gains of 0.01%. The comments from US Treasury Secretary Jenet Yellen on rising interest rates and inflation proved to be ineffective as the market digested them.

On the other hand, rising coronavirus cases in Japan are taking a toll on the economic outlook. As reported, Japan might extend the state of emergency in the capital, Tokyo, and other major cities, a move that raises doubts about the planned Summer Olympics.

Traders are looking forward to the release of the US ADP and PMI data for fresh trading impetus.

As for now the dynamics around the US dollar continue to influence the pair’s performance.

USD/JPY additional levels

USD/JPY

Overview
Today last price	109.39
Today Daily Change	0.04
Today Daily Change %	0.04
Today daily open	109.35

Trends
Daily SMA20	108.8
Daily SMA50	108.73
Daily SMA100	106.45
Daily SMA200	105.82

Levels
Previous Daily High	109.49
Previous Daily Low	109.03
Previous Weekly High	109.37
Previous Weekly Low	107.64
Previous Monthly High	110.85
Previous Monthly Low	107.48
Daily Fibonacci 38.2%	109.31
Daily Fibonacci 61.8%	109.21
Daily Pivot Point S1	109.09
Daily Pivot Point S2	108.83
Daily Pivot Point S3	108.63
Daily Pivot Point R1	109.55
Daily Pivot Point R2	109.75
Daily Pivot Point R3	110.01

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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