USD/JPY: Listless below 110.00 amid risk-aversion

USD/JPY on the back foot amid US tariffs news led risk-off.
USD trades broadly weaker amid falling Treasury yields.
Focus on the US-China phase one trade deal signing ceremony.

Dhwani Mehta FXStreet

USD/JPY trades modestly flat around 109.90 in the European morning, extending its 20-pips trading range below the 110 level.

Despite the range play, the bias leans towards the downside, as the demand for the safe-haven yen remains underpinned amid jittery markets.

Investors remain wary over the effectiveness of the US-China phase one trade deal, especially in light of the latest Bloomberg report that the US will not remove tariffs on Chinese imports until after the 2020 presidential election.

The cautious market mood can be indicated by the weakness in the US Treasury yields and S&P 500 futures that in turn weigh down on the US dollar when compared to its main competitors.

Adding to the souring risk sentiment are the fresh concerns over JCPOA deal amid a growing rift between the European Union (EU) and Iran. The focus now shifts towards the US Producer Price Index (PPI) data and trade deal signing (due at 1630 GMT) while markets shrugged off the Bank of Japan’s (BOJ) quarterly regional economic assessment report.

USD/JPY Technical levels to consider

USD/JPY

Overview
Today last price	109.94
Today Daily Change	-0.01
Today Daily Change %	-0.01
Today daily open	109.96

Trends
Daily SMA20	109.17
Daily SMA50	109.04
Daily SMA100	108.42
Daily SMA200	108.59

Levels
Previous Daily High	110.21
Previous Daily Low	109.85
Previous Weekly High	109.69
Previous Weekly Low	107.65
Previous Monthly High	109.8
Previous Monthly Low	108.43
Daily Fibonacci 38.2%	110.08
Daily Fibonacci 61.8%	109.99
Daily Pivot Point S1	109.8
Daily Pivot Point S2	109.65
Daily Pivot Point S3	109.44
Daily Pivot Point R1	110.16
Daily Pivot Point R2	110.37
Daily Pivot Point R3	110.52

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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