USD/JPY off lows, still in the red below 110.00 mark

USD/JPY extended the previous session’s rejection from 110.00 round-figure mark.
Reviving safe-haven demand benefitted the JPY and exerted some fresh pressure.
The downside remains limited and thus, warrants some caution for bearish traders.

Haresh Menghani FXStreet

The USD/JPY pair edged lower on Tuesday and dropped to three-day lows during the Asian session, albeit has managed to recover few pips thereafter.

Following the previous session's failed attempt to reclaim the key 110.00 psychological mark, the pair came under some fresh selling pressure on Tuesday amid a turnaround in the global risk sentiment.

USD/JPY weighed by reviving safe-haven demand

Worries over the economic impact of the deadly coronavirus outbreak resurfaced on Tuesday after Apple warned that it will be unable to meet its March quarter guidance due to iPhone production issues.

The warning from the most valuable company in the US dampened the recent optimism led by the PBoC’s stimulus measures and provided a modest boost to the Japanese yen's safe-haven status.

The global flight to safety was further reinforced by sliding US Treasury bond yields, which kept the US dollar bulls on the defensive and further collaborated to the pair's intraday slide to the 109.65 region.

Despite the pullback, the pair managed to find some support at lower levels and remained confined in a familiar trading range as investors preferred to wait for a fresh catalyst before placing directional bets.

Hence, it will be prudent to wait for some strong follow-through selling, possibly below a strong horizontal support near mid-109.00s, before positioning for any further near-term depreciating move.

Technical levels to watch

USD/JPY

Overview
Today last price	109.77
Today Daily Change	-0.16
Today Daily Change %	-0.15
Today daily open	109.93

Trends
Daily SMA20	109.48
Daily SMA50	109.37
Daily SMA100	108.95
Daily SMA200	108.38

Levels
Previous Daily High	109.96
Previous Daily Low	109.72
Previous Weekly High	110.14
Previous Weekly Low	109.56
Previous Monthly High	110.29
Previous Monthly Low	107.65
Daily Fibonacci 38.2%	109.87
Daily Fibonacci 61.8%	109.81
Daily Pivot Point S1	109.78
Daily Pivot Point S2	109.63
Daily Pivot Point S3	109.54
Daily Pivot Point R1	110.02
Daily Pivot Point R2	110.11
Daily Pivot Point R3	110.26

Author

Haresh Menghani

FXStreet

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

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