USD/JPY remains sidelined around 109.00 amid steady Treasury yields


  • USD/JPY bears take a breather around the lowest level in 10 weeks.
  • Japan reports second-highest daily infections, teases national emergency.
  • US CDC issues temporary moratorium on witnessing higher jump in cases since February.
  • US data, covid headlines become the key, stimulus news may also entertain traders.

USD/JPY licks its wounds around 109.00 after testing the lowest level since May 26 the previous day. That said, the Japanese yen (JPY) pair declined during the last two days before recently sluggish performance tracking the US Treasury yields.

It’s worth noting that the escalating Delta covid variant woes in the US and Japan, as well as indecision over the Fed’s next moves and cautious sentiment before the key US data, could be linked as the major catalysts behind the quote latest moves.

The US Centres for Disease Control and Prevention (CDC) issued a temporary moratorium, expiring on October 03, after noting the heaviest jump in infections in February. On the other hand, Japan’s Kyodo News conveyed 12,017 new covid cases, the second-highest on record. It’s worth noting that an anonymous senior health official from Japan was quoted favoring the national emergency after the covid data.

Not only in Japan and the US, the latest virus numbers from China, India and Australia also backed the concerns that the pandemic may slow down economic recovery.

Even so, worries over the Fed’s next moves ahead of the key US Nonfarm Payrolls, not to forget today’s ADP Employment Change and ISM Services PMI, keep the US Dollar Index (DXY) pressured.

That said, the US 10-year Treasury yields stay sidelined near 1.18% whereas the US stock futures and Japan’s Nikkei 225 print mild losses by the press time.

While sour sentiment could weigh on the USD/JPY prices, today’s US data will be crucial as the pair already refrains to refresh the multi-day low of late.

Technical analysis

A clear downside break of an ascending trend line from late April, around 109.40, directs USD/JPY towards a five-month-old horizontal area around 108.35.

Additional important levels

Overview
Today last price 109.05
Today Daily Change -0.01
Today Daily Change % -0.01%
Today daily open 109.06
 
Trends
Daily SMA20 109.96
Daily SMA50 110.1
Daily SMA100 109.6
Daily SMA200 107.19
 
Levels
Previous Daily High 109.34
Previous Daily Low 108.88
Previous Weekly High 110.58
Previous Weekly Low 109.36
Previous Monthly High 111.66
Previous Monthly Low 109.06
Daily Fibonacci 38.2% 109.06
Daily Fibonacci 61.8% 109.17
Daily Pivot Point S1 108.84
Daily Pivot Point S2 108.62
Daily Pivot Point S3 108.37
Daily Pivot Point R1 109.31
Daily Pivot Point R2 109.56
Daily Pivot Point R3 109.77

 

 

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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD clings to daily gains around 1.1650 after mixed US data

Fueled by the broad dollar weakness, EUR/USD advanced to its highest level in nearly three weeks at 1.1670 during the European trading hours on Tuesday but retreated modestly following the mixed US data. Investors await Fed officials' speeches.

EUR/USD News

GBP/USD extends rally beyond 1.3800 on USD selloff

GBP/USD extended its rally in the European trading hours and reached its strongest level in a month above 1.3800. The broad-based selling pressure surrounding the greenback and the BoE rate hike expectations ahead of UK CPI data fuel the pair's upside.

GBP/USD News

XAU/USD targets $1791 on turnaround Tuesday

Gold price jumps 1% as the US dollar keeps losing ground across the board. Retreat in Treasury yields, risk-on mood aid the rebound in gold price. 

Gold News

Stellar's XLM won't face the same legal issues in the US as Ripple did

Ripple and XRP are still battling with the SEC nearly a year after the lawsuit was first filed. Due to the inherent similarities between the target space of XRP and XLM, some speculate that the regulators might target Stellar next.

Read more

Netflix (NFLX): Will Q3 earnings after the close be enough?

Netflix (NFLX) shares continued to perform strongly on Monday with results just around the corner. The stock has been very strong for some time, setting new all-time highs on the back of the global success of Squid Game.

Read more

Forex MAJORS

Cryptocurrencies

Signatures