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

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

AUD/USD recovers above 0.6750 after Australian jobs data

AUD/USD recovers above 0.6750 after Australian jobs data

AUD/USD picks up a late bid and recovers above 0.6750 in Asian trading on Thursday, following the release of mixed Australian employment data. The extended post-Fed US Dollar recovery, amid a cautious market mood, could limit the pair's upside ahead of US data. 

AUD/USD News
USD.JPY jumps toward 144.00 on the road to recovery

USD.JPY jumps toward 144.00 on the road to recovery

USD/JPY gains traction and approaches 144.00 in Thursday's Asian session. The uptick of the pair is bolstered by the impressive US Dollar recovery. Investors shift their attention to the US data and the Bank of Japan interest rate decision on Friday. 

USD/JPY News
Gold price remains on the defensive amid the post-FOMC USD recovery from YTD low

Gold price remains on the defensive amid the post-FOMC USD recovery from YTD low

Gold price struggles to lure buyers despite the Fed’s jumbo interest rate cut on Wednesday. A further recovery in the US bond yields underpins the USD and caps the non-yielding metal. Concerns about an economic slowdown, along with geopolitical risks, help limit the downside.

Gold News
Ethereum attempts recovery following first rate cut in four years

Ethereum attempts recovery following first rate cut in four years

Ethereum is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds recorded $15.1 million in outflows.

Read more
Australian Unemployment Rate expected to hold steady at 4.2% in August

Australian Unemployment Rate expected to hold steady at 4.2% in August

The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures