USD/JPY recovers to 109.50 area in quiet session

US bond and stocks markets are closed due to Thanksgiving Day holiday.
US Dollar Index continues to float above 98.30.
Coming up: Consumer Confidence Index data from Japan.

Eren Sengezer FXStreet

The USD/JPY pair lost its traction during the Asian trading hours as the market mood soured after US President Trump signed the Hong Kong Human Rights and Democracy Act into law to further escalate the geopolitical tensions with China. Following a drop to 109.30 area, the pair staged a technical rebound during the European trading hours and turned flat on the day at 109.55.

USD preserves strength

On Wednesday, the US Bureau of Economic Analysis' second estimate of the third-quarter Gross Domestic Product (GDP) rose to 2.1% from 1.9% and came in higher than the market expectation of 1.9% to help the greenback continue to outperform its rivals.

The US Dollar Index, which tracks the USD's value against a basket of six major currencies, rose to a fresh two-week high of 98.44 before going into a consolidation phase on Thursday. With the market action turning subdued on US Thanksgiving day, the index is posting modest gains above the 98.30 mark.

In the early trading hours of the Asian session on Friday, Consumer Confidence Index, Housing Starts and Vehicle Production data from Japan will be looked upon for fresh impetus. Although the US bond and stocks market will return to action on Friday, they will be closed during the first half of the day and are unlikely to provide any clues regarding the market sentiment.

Technical levels to watch for

USD/JPY

Overview
Today last price	109.54
Today Daily Change	-0.01
Today Daily Change %	-0.01
Today daily open	109.55

Trends
Daily SMA20	108.8
Daily SMA50	108.35
Daily SMA100	107.74
Daily SMA200	108.94

Levels
Previous Daily High	109.61
Previous Daily Low	109.02
Previous Weekly High	109.08
Previous Weekly Low	108.28
Previous Monthly High	109.29
Previous Monthly Low	106.48
Daily Fibonacci 38.2%	109.39
Daily Fibonacci 61.8%	109.25
Daily Pivot Point S1	109.17
Daily Pivot Point S2	108.8
Daily Pivot Point S3	108.58
Daily Pivot Point R1	109.76
Daily Pivot Point R2	109.98
Daily Pivot Point R3	110.36

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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