USD/JPY recovers further from 7-week lows, moves beyond mid-106.00s


  • A modest USD rebound assisted USD/JPY to gain some traction on Wednesday.
  • Hopes of a V-shaped global economic recovery undermined the safe-haven JPY.
  • A cautious mood around the equity markets might keep a lid on any strong gains.

The USD/JPY pair traded with a mild positive bias through the early European session and was last seen trading near daily tops, just above mid-106.00s.

The pair managed to regain some positive traction on Tuesday and built on the previous day's late rebound from the vicinity of the 106.00 round-figure mark, or seven-week lows. The uptick was supported by a modest pickup in the US dollar demand, though lacked any strong bullish conviction.

Following the slump witnessed over the past two trading sessions, the greenback staged a modest recovery on Tuesday and was seen as one of the key factors lending some support to the USD/JPY pair. Bulls further took cues from some follow-through move up in the US Treasury bond yields.

This comes on the back of the latest optimism over a sharp V-shaped global economic recovery, which partly offset worries about a resurgent in new coronavirus cases and remained supportive. However, a cautious mood around the equity markets kept a lid on any strong gains for the USD/JPY pair.

In the absence of any major market-moving economic releases on Wednesday, the pair remains at the mercy of the USD price dynamics and the broader risk sentiment. This makes it prudent to wait for some strong follow-through strength before confirming that the USD/JPY pair might have bottomed out.

Technical levels to watch

USD/JPY

Overview
Today last price 106.59
Today Daily Change 0.07
Today Daily Change % 0.07
Today daily open 106.52
 
Trends
Daily SMA20 107.68
Daily SMA50 107.43
Daily SMA100 108.06
Daily SMA200 108.41
 
Levels
Previous Daily High 107.22
Previous Daily Low 106.08
Previous Weekly High 107.64
Previous Weekly Low 106.67
Previous Monthly High 108.09
Previous Monthly Low 105.99
Daily Fibonacci 38.2% 106.51
Daily Fibonacci 61.8% 106.78
Daily Pivot Point S1 105.99
Daily Pivot Point S2 105.46
Daily Pivot Point S3 104.84
Daily Pivot Point R1 107.14
Daily Pivot Point R2 107.75
Daily Pivot Point R3 108.28

 

 

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