USD/JPY renews multi-month lows at 109.60 as risk aversion continues to dominate

The 10-year T-bond yield drops more than 1% following Wednesday's recovery.
Wall Street looks to open the day in the negative territory.
Eyes on China-U.S. trade talks today.

Eren Sengezer FXStreet

The USD/JPY pair closed the previous day below the 110 mark for the first time since early April yesterday and extended its slide today to touch its lowest level since the first week of February at 109.60. Following that drop, the pair staged a modest rebound and was last seen trading at 109.90, losing 0.2% on a daily basis.

Earlier today, China’s Commerce Ministry said that they oppose the unilaterally imposed tariffs of the U.S. and reiterated that they will take "necessary countermeasure" if the U.S. increases the tariff rate. "Trade delegation has already left Beijing and Vice Premier Liu's visit shows China's sincerity," the statement further read. Headlines coming out of today's high-level talks in Washington will be watched closely by participants. If sides fail to reach a deal today, the U.S. is set to hike the tariff rate on $200 billion worth of Chinese imports to 25% from 10% on Friday.

Meanwhile, reports of North Korea firing unidentified projectiles today further escalated the geopolitical tension and ramped up the demand for traditional safe-havens such as the JPY.

In the second half of the day, the Producer Price Index (PPI) and weekly jobless claims data from the U.S. will be looked upon for fresh impetus. Ahead of this data, the US Dollar Index was virtually unchanged on a daily basis at 97.62.

Technical levels to watch for

USD/JPY

Overview
Today last price	109.88
Today Daily Change	-0.22
Today Daily Change %	-0.20
Today daily open	110.1

Trends
Daily SMA20	111.55
Daily SMA50	111.35
Daily SMA100	110.57
Daily SMA200	111.49

Levels
Previous Daily High	110.32
Previous Daily Low	109.9
Previous Weekly High	111.9
Previous Weekly Low	111.05
Previous Monthly High	112.4
Previous Monthly Low	110.8
Daily Fibonacci 38.2%	110.06
Daily Fibonacci 61.8%	110.15
Daily Pivot Point S1	109.89
Daily Pivot Point S2	109.68
Daily Pivot Point S3	109.47
Daily Pivot Point R1	110.31
Daily Pivot Point R2	110.52
Daily Pivot Point R3	110.73

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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