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

Today last price 109.05
Today Daily Change -0.01
Today Daily Change % -0.01%
Today daily open 109.06
Daily SMA20 109.96
Daily SMA50 110.1
Daily SMA100 109.6
Daily SMA200 107.19
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



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