USD/JPY recovers modestly, trades above 109.80 on improving mood

USD/JPY is edging slightly higher in the American session.
Wall Street's main indexes are trading in the positive territory.
10-year US Treasury bond yield is posting modest daily gains.

Eren Sengezer FXStreet

The USD/JPY pair dropped toward 109.50 area earlier in the day but reversed its direction in the second half of the day. As of writing, the pair was up 0.1% on the day at 109.83.

The improving market sentiment seems to be making it difficult for the JPY to find demand ahead of the weekend. Reflecting the upbeat mood, the S&P 500 and the Nasdaq Composite indexes are rising 0.35% and 0.9% respectively. Moreover, the 10-year US Treasury bond yield, which was down nearly 1% during the European session, is now up 0.4% on a daily basis and helping USD/JPY stay in the positive territory.

Nevertheless, the USD is also struggling to gather strength and limiting USD/JPY's upside. Currently, the US Dollar Index is flat on the day at 93.57.

USD/JPY outlook

Commenting on USD/JPY's recent action, "momentum indicators are turning ‘flat’ and for today, USD is likely to trade sideways, expected to be within a 109.55/110.05 range," said UOB Group analysts.

USD/JPY now moved into a consolidative phase – UOB.

Technical levels to watch for

USD/JPY

Overview
Today last price	109.84
Today Daily Change	0.11
Today Daily Change %	0.10
Today daily open	109.73

Trends
Daily SMA20	109.86
Daily SMA50	110.18
Daily SMA100	109.66
Daily SMA200	107.5

Levels
Previous Daily High	110.23
Previous Daily Low	109.48
Previous Weekly High	110.8
Previous Weekly Low	109.55
Previous Monthly High	111.66
Previous Monthly Low	109.06
Daily Fibonacci 38.2%	109.77
Daily Fibonacci 61.8%	109.94
Daily Pivot Point S1	109.4
Daily Pivot Point S2	109.07
Daily Pivot Point S3	108.66
Daily Pivot Point R1	110.14
Daily Pivot Point R2	110.56
Daily Pivot Point R3	110.89

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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