USD/JPY: Major bull cross fails to inspire Yen bears

USD/JPY remains below 110.00 despite bull cross on technical charts.
The S&P 500 futures are hinting at risk reset in the markets.
A notable equity market recovery could weigh over yen.

Omkar Godbole FXStreet Contributor

USD/JPY is hovering below 110.00 with yen showing resilience, despite the bullish development on technical charts.

Bull cross

The 100-day moving average has crossed above the 200-day MA, confirming a bullish crossover, the first since August 2018.

So far, however, that has failed to inspire yen sellers. The USD/JPY pair is currently sidelined around 109.90, having faced rejection at 109.97 a few minutes ago.

The long-term bull cross is a lagging indicator and often ends up trapping the bulls on the wrong side of the market.

Eyes broader market sentiment

The futures on the S&P 500 are currently reporting a 0.20% gain, signaling a potential risk reset in the markets.

If the equities continue to rise, the USD/JPY pair could retake the 110.00 handle.

The spot fell from 110.22 to 109.76 on Tuesday as global equity markets fell on coronavirus scare

The US stocks tracked its Asian and European equities lower on Tuesday with the S&P 500 losing 8 points or 0.27%, courtesy of coronavirus scare, sending the anti-risk yen higher.

Technical levels

USD/JPY

Overview
Today last price	109.9
Today Daily Change	0.09
Today Daily Change %	0.08
Today daily open	109.81

Trends
Daily SMA20	109.32
Daily SMA50	109.13
Daily SMA100	108.61
Daily SMA200	108.55

Levels
Previous Daily High	110.23
Previous Daily Low	109.76
Previous Weekly High	110.3
Previous Weekly Low	109.46
Previous Monthly High	109.8
Previous Monthly Low	108.43
Daily Fibonacci 38.2%	109.94
Daily Fibonacci 61.8%	110.05
Daily Pivot Point S1	109.64
Daily Pivot Point S2	109.47
Daily Pivot Point S3	109.17
Daily Pivot Point R1	110.11
Daily Pivot Point R2	110.4
Daily Pivot Point R3	110.57

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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