USD/JPY looks to end day with modest gains near 110


  • Wall Street's main indexes hit new all-time highs.
  • US Dollar Index stretches higher toward 99 on Wednesday.
  • 10-year US Treasury bond yield adds more than 1%.

The USD/JPY pair spent the Asian session in a tight range below the 110 handle but gained traction during the European morning and touched its highest level in more three weeks at 110.14. Although the pair lost its momentum after the initial upsurge, it remains on track to close the day modestly higher near 110.

Risk rally continues

The positive market sentiment on Wednesday seems to be weighing on the demand for traditional safe-havens such as the JPY. The official data from China showed that, as of Wednesday morning, the growth rate of new coronavirus infections fell to the lowest level since late January. Moreover, China's National Health Commission (NHC) announced that the recovery rate from infections rose to 10.6% from 1.3% on January 27th. 

Major European equity indexes closed the day decisively higher and Wall Street's main indexes hit fresh all-time highs to reflect the strong risk appetite. Additionally, the 10-year US Treasury bond yield, which closed the previous day 1.4% higher, extended its recovery and was last up 1.8% on the day at 1.626%.

In the meantime, the poor performance of major European currencies during the American session provided a boost to the greenback and helped the pair stay in the positive territory. The US Dollar Index was last seen testing the 99 handle, adding 0.22%.

Producer Price Index (PPI) will be the only data featured in the Japanese economic docket on Thursday.

Technical levels to watch for

USD/JPY

Overview
Today last price 110.04
Today Daily Change 0.26
Today Daily Change % 0.24
Today daily open 109.78
 
Trends
Daily SMA20 109.52
Daily SMA50 109.27
Daily SMA100 108.88
Daily SMA200 108.38
 
Levels
Previous Daily High 109.97
Previous Daily Low 109.73
Previous Weekly High 110.02
Previous Weekly Low 108.32
Previous Monthly High 110.29
Previous Monthly Low 107.65
Daily Fibonacci 38.2% 109.87
Daily Fibonacci 61.8% 109.82
Daily Pivot Point S1 109.68
Daily Pivot Point S2 109.59
Daily Pivot Point S3 109.44
Daily Pivot Point R1 109.92
Daily Pivot Point R2 110.06
Daily Pivot Point R3 110.16

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD stable at around 1.1700, waiting for a fresh catalyst

The EUR/USD pair has spent most of the last trading session of the day stuck around 1.1700. Upbeat US Durable Goods Orders spurred modest demand for high-yielding assets.

EUR/USD News

GBP/USD hovers around 1.37. dismissing UK petrol crisis

GBP/USD is trading at around 1.37, as sterling shrugs off the drying up of some petrol stations due to Brexit-related lorry driver shortages.

GBP/USD News

Gold bulls not interested

Upbeat US data lifted the market’s mood and weighed on the dollar. US Treasury yields continue climbing to multi-month highs. XAU/USD is marginally higher on a daily basis but bears retain control.

Gold News

Shiba Inu stagnation period might result in 20% correction

Shibu Inu price continues to contract and cause frustration for bulls and bears. However, Shibu Inu is trading near the apex of the triangle pattern it is currently inside. Therefore, a breakout lower is likely to occur very soon.

Read more

Conference Board Consumer Confidence: Unhappy but still spending

Consumer Confidence expected to rise slightly to 114.5 in September. August’s confidence reading at 113.8 was the lowest since February. Weak Consumer Confidence did not damage August Retail Sales or Durable Goods Orders.

Read more

Forex MAJORS

Cryptocurrencies

Signatures