• Escalating US-China trade tensions continue to underpin JPY’s safe-haven appeal.
• A modest USD rebound/positive equities helped limit further downside for now.
The USD/JPY pair held on to its weaker tone through the mid-European session, albeit has managed to recover around 25-pips from session lows.
Mounting US-China trade tensions continued boosting the Japanese Yen's safe-haven appeal and kept exerting downward pressure on the major for the second consecutive session. The pair dropped back to two-week lows, set yesterday, but once again managed to find decent support near 55-day SMA, around the 109.40-35 region.
However, some signs of stability in global financial markets, following yesterday's trade war fear-led sell-off, coupled with a goodish pickup in the US Dollar demand helped the pair to recover a major part of early declines.
Bulls also seemed to track a modest rebound across European equity markets and mildly positive US bond yields, although failed to assist the pair to move in positive territory, or back above the key 110.00 psychological mark.
Today's US economic docket, highlighting the release of Conference Board's consumer confidence index, followed by Atlanta Fed President Raphael Bostic's scheduled speech might produce some meaningful trading opportunities during the North-American session.
Technical levels to watch
The 109.75-80 area is likely to act as an immediate resistance and is followed by the 110.00 handle and the very important 200-day SMA hurdle near the 110.20-25 region. On the flip side, the 109.40-35 region might continue to protect the immediate downside, which if broken is likely to accelerate the fall towards the 109.00 round figure mark.
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.