- A sudden turnaround in equities weighed on the JPY’s safe-haven status and helped gain traction.
- Upbeat US macro data remained supportive; falling US bond yields capped any further up-move.
The USD/JPY pair has now recovered around 40-pips from daily lows, with bulls now looking to extend the momentum further beyond the 106.00 round figure mark.
Having faced rejection near 100-period EMA on the 4-hourly chart in the previous session, the pair met with some fresh supply on Tuesday and was being weighed down by reviving safe-haven demand for the Japanese Yen amid fading optimism over a quick resolution of the prolonged US-China trade disputes.
Bulls take cues from improving risk sentiment
This coupled with a fresh leg of a downfall in the US Treasury bond yields undermined the US Dollar demand and further collaborated to the intraday slide. However, a sudden turnaround in the global risk sentiment helped limit further losses instead helped the pair to find decent support near the 105.60 region.
On the economic data front, the upbeat release of Conference Board's US Consumer Confidence Index - coming in at 135.1 for August and an upward revision of the previous month's already stronger reading - remained supportive, albeit failed to provide any meaningful impetus.
Hence, it will be prudent to wait for a strong follow-through buying before confirming that the pair might have actually bottomed out in the near-term and positioning for any further near-term appreciating move beyond the recent swing highs resistance near the 106.70-75 region.
Technical levels to watch
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.
Recommended content
Editors’ Picks
EUR/USD nears 1.0800 on broad US Dollar weakness
Optimism continues to undermine demand for the American currency ahead of the weekly close. EUR/USD hovers around weekly highs just ahead of the 1.0900 figure.
GBP/USD reconquers 1.2500 with upbeat UK GDP
Following BOE-inspired slump on Thursday, the British Pound changed course and trades around 1.2530. Better-than-anticipated UK GDP and a weaker USD behind the advance.
Gold resumes advance and trades above $2,370
XAU/USD accelerated its recovery on Friday, as investors drop the USD. Dismal US employment-related figures revived hopes for a soon-to-come rate cut from the Fed.
XRP tests support at $0.50 as Ripple joins alliance to work on blockchain recovery
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Week ahead – US inflation numbers to shake Fed rate cut bets
Fed rate-cut speculators rest hopes on US inflation data. After dovish BoE, pound traders turn to UK job numbers. Will a strong labor market convince the RBA to hike? More Chinese data on tap amid signs of slow Q2 start.