USD/JPY regains poise, refreshes session highs

The uptick in the S&P 500 futures is likely powering gains in USD/JPY.
The currency pair has set a new session high of 110.48.
Asian equities are still flashing red and could play spoilsport.

Omkar Godbole FXStreet Contributor

The Japanese yen is on the offer and is pushing the USD/JPY pair higher.

The currency pair is currently trading at session highs near 110.48, representing 0.24% gains on the day.

The anti-risk yen ran into bids an hour ago as the S&P 500 futures erased early gains. As a result, the pair fell from 110.37 to 110.18.

The pullback, however, has been reversed with a move to fresh session highs, as noted earlier. The renewed strength could be associated with the uptick in the S&P 500 futures, which are now reporting a 0.70% gain on the day.

The US index futures seem to have found bids on reports stating that Singapore researchers have made advances in the coronavirus test method.

So far, however, the news has failed to lift the mood in the major Asian markets. Currently, Japan's Nikkei, South Korea's Kospi and the Shanghai Composite are flashing red.

That leaves the doors open for a sudden drop in both the S&P 500 futures and the USD/JPY pair.

The currency pair fell sharply from 112.19 to 109.89 in the last three days as the financial markets turned risk-averse in response to the news of the coronavirus outbreak in countries like South Korea and Italy. Notably, the Dow Jones Industrial Average shed over 1,800 points in the previous two days, pushing the anti-risk assets higher.

Technical levels

1. R3 111.96
2. R2 111.5
3. R1 110.81
PP 110.35
1. S1 109.66
2. S2 109.2
3. S3 108.51

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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