- USD/JPY failed to build on the overnight recovery and meets with some fresh supply on Tuesday.
- Improving risk-sentiment undermined the JPY’s safe-haven demand and extended some support.
- Recovering US bond yields helped ease the recent USD bearish pressure and limit deeper losses.
The USD/JPY pair trimmed a part of its early losses and has managed to recover around 30 pips from the Asian session swing low level of 107.66.
The pair failed to capitalize on the previous day's goodish intraday recovery move of around 120 pips from five-month lows and faced rejection near the very important 200-day SMA. The downtick lacked any obvious fundamental catalyst, rather attracted some dip-buying amid a further recovery in the global risk sentiment.
The downside seems cushioned
The recent worries over the coronavirus outbreak were partly offset by speculations of a coordinated interest rate cut by the top central banks. This eventually turned out to be one of the key factors that extended some support to investors' sentiment and weighed on the Japanese yen's perceived safe-haven status.
Reviving demand for riskier assets was evident from a positive mood around equity markets and reinforced by a strong rally in the US Treasury bond yields, which helped ease the recent bearish pressure surrounding the US dollar and further collaborated towards limiting the downside, at least for the time being.
It, however, remains to be seen if the pair is able to capitalize on the attempted recovery or continues with its recent downward trajectory. Investors await Tuesday's G7 conference call before positioning for the next leg of a directional move amid absent relevant market moving economic releases from the US.
Technical levels to watch
|Today last price||107.97|
|Today Daily Change||-0.47|
|Today Daily Change %||-0.43|
|Today daily open||108.44|
|Previous Daily High||108.58|
|Previous Daily Low||107.38|
|Previous Weekly High||111.68|
|Previous Weekly Low||107.51|
|Previous Monthly High||112.23|
|Previous Monthly Low||107.51|
|Daily Fibonacci 38.2%||108.12|
|Daily Fibonacci 61.8%||107.84|
|Daily Pivot Point S1||107.68|
|Daily Pivot Point S2||106.93|
|Daily Pivot Point S3||106.48|
|Daily Pivot Point R1||108.88|
|Daily Pivot Point R2||109.33|
|Daily Pivot Point R3||110.09|
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.