USD/JPY refreshes session tops, looks to extend momentum beyond 104.00

USD/JPY attracted some dip-buying on Wednesday and recovered a part of the overnight losses.
The emergence of fresh buying around the USD contributed to the pair’s intraday rally of 50 pips.
The bullish sentiment undermined the safe-haven JPY and remained supportive ahead of US CPI.

Haresh Menghani FXStreet

The USD/JPY pair refreshed daily tops during the mid-European session, with bulls now looking to build on the momentum further beyond the 104.00 mark.

The pair quickly reversed an intraday dip to near one-week lows, around mid-103.00s and has now recovered a part of the previous day's losses. The intraday uptick got an additional boost amid the emergence of some fresh buying around the US dollar.

The yield on the benchmark 10-year US government bond stalled its retracement slide from a 10-month high hit on Tuesday and helped revive the USD demand. This, in turn, was seen as a key factor behind the USD/JPY pair's intraday gains of around 50 pips.

Investors started pricing in the prospects for a more aggressive US fiscal spending in 2021 following the Democratic sweep in the US Senate runoff elections in Georgia. Expectations of a larger government borrowing sparked a bond-market selloff and boosted the USD.

Apart from this, hopes for a strong global economic recovery remained supportive of the underlying bullish sentiment in the financial markets. The risk-on mood undermined the safe-haven Japanese yen and extended some additional support to the USD/JPY pair.

Market participants now look forward to the US economic docket – highlighting the release of the latest consumer inflation figures. This, along with the US bond yields, will influence the USD price dynamics and produce some opportunities around the USD/JPY pair.

Technical levels to watch

USD/JPY

Overview
Today last price	103.94
Today Daily Change	0.20
Today Daily Change %	0.19
Today daily open	103.74

Trends
Daily SMA20	103.48
Daily SMA50	103.97
Daily SMA100	104.7
Daily SMA200	105.88

Levels
Previous Daily High	104.33
Previous Daily Low	103.72
Previous Weekly High	104.09
Previous Weekly Low	102.59
Previous Monthly High	104.75
Previous Monthly Low	102.88
Daily Fibonacci 38.2%	103.96
Daily Fibonacci 61.8%	104.1
Daily Pivot Point S1	103.53
Daily Pivot Point S2	103.32
Daily Pivot Point S3	102.92
Daily Pivot Point R1	104.14
Daily Pivot Point R2	104.54
Daily Pivot Point R3	104.75

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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