USD/JPY off lows, still in the red around 105.30-25 region

USD/JPY witnessed some fresh selling on Friday and eroded a part of the overnight gains.
A modest USD pullback, weaker US bond yields exerted downward pressure on the pair.
The downside remains limited, warranting some caution before placing fresh bearish bets.

Haresh Menghani FXStreet

The USD/JPY pair maintained its offered tone through the early European session, albeit has managed to trim a part of its early losses to the 105.20-15 region.

The pair met with some fresh supply on the last trading day of the week and eroded a part of the previous day's positive move of around 45 pips from the vicinity of the key 105.00 psychological mark. The downtick was exclusively sponsored by a modest US dollar pullback, though signs stability in the equity markets dented demand for the safe-haven Japanese yen and helped limit the downside for the USD/JPY pair.

The greenback edged lower during the first half of the trading action on Friday amid fading hopes of additional US fiscal stimulus measures ahead of the US presidential election on November 3. Adding to this, sliding US Treasury bond yields further undermined the buck. However, concerns about a steep rise in new coronavirus infections in Europe and the US extended some support to the USD's status as the global reserve currency.

The lack of any strong follow-through selling warrants some caution for bearish traders. This makes it prudent to wait for a sustained break below the key 105.00 psychological mark before positioning for any further near-term depreciating move for the USD/JPY pair.

Market participants now look forward to the US monthly Retails Sales figures for some impetus. Friday's US economic docket also features the Industrial Production data and the preliminary estimate of the October Michigan Consumer Sentiment Index. This, along with the broader market risk sentiment might produce some short-term trading opportunities.

Technical levels to watch

USD/JPY

Overview
Today last price	105.29
Today Daily Change	-0.15
Today Daily Change %	-0.14
Today daily open	105.44

Trends
Daily SMA20	105.42
Daily SMA50	105.78
Daily SMA100	106.42
Daily SMA200	107.4

Levels
Previous Daily High	105.49
Previous Daily Low	105.07
Previous Weekly High	106.11
Previous Weekly Low	105.28
Previous Monthly High	106.55
Previous Monthly Low	104
Daily Fibonacci 38.2%	105.33
Daily Fibonacci 61.8%	105.23
Daily Pivot Point S1	105.17
Daily Pivot Point S2	104.91
Daily Pivot Point S3	104.75
Daily Pivot Point R1	105.59
Daily Pivot Point R2	105.75
Daily Pivot Point R3	106.01

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.