USD/JPY: Rebounds from weekly lows near 109.50 on USD recovery

USD/JPY remains muted after the previous day’s slump on Wednesday.
Lower US Treasury yields undermine the demand for the US dollar.
US Dollar Index recovers from the daily lows toward 92.70.

Rekha Chauhan Independent Analyst

After testing the weekly lows in the American session, USD/JPY manages to push above 109.70 in a 20-pip movement. The disappointing US Consumer Price Index (CPI) induced broad-based USD selling pressured the USD/JPY near the higher levels. At the time of writing, USD/JPY is trading at 109.70, up 0.01% for the day.

The USD/JPY pair fell from the high of 110.16 on Tuesday following the sell-off in the greenback. The US Dollar Index (DXY), which tracks the performance of the buck against the basket of six major currencies retreated from the high of 92.66 to the test low of 92.29 before staging an advance back to the 92.60 level.

The US benchmark Treasury yields retreated on Tuesday after inflation data showed a slightly smaller-than-expected rise in prices. The yield on the 10-year Treasury bond fell 4.7 basis points to 1.277% before recovering towards 1.28%.

The CPI data came at 5.3% in August on a yearly basis slightly below the market expectations of 5.4%. Investors assessed the readings as a signal that Fed would not raise the interest rate any sooner.

On the other hand, the Japanese Yen gains on its safe-haven appeal as the optimism induced after the report that Japan is on track to reach the vaccination levels of the US and Europe.

As for now, traders are waiting for the Japanese Machine Orders, US Trade data, and Industrial Production data to gauge the market sentiment.

USD/JPY additional levels

USD/JPY

Overview
Today last price	109.72
Today Daily Change	-0.27
Today Daily Change %	-0.25
Today daily open	109.99

Trends
Daily SMA20	109.89
Daily SMA50	109.95
Daily SMA100	109.82
Daily SMA200	107.99

Levels
Previous Daily High	110.16
Previous Daily Low	109.84
Previous Weekly High	110.45
Previous Weekly Low	109.62
Previous Monthly High	110.8
Previous Monthly Low	108.72
Daily Fibonacci 38.2%	110.04
Daily Fibonacci 61.8%	109.96
Daily Pivot Point S1	109.83
Daily Pivot Point S2	109.67
Daily Pivot Point S3	109.51
Daily Pivot Point R1	110.15
Daily Pivot Point R2	110.32
Daily Pivot Point R3	110.48

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.