USD/JPY retreats farther from 2-week tops, below mid-110.00s

Haresh Menghani FXStreet

• A further escalation in the US-China trade tensions underpins JPY’s safe-haven demand.
• Some renewed USD buying interest does little to support or stall the steady intraday slide.
• Investors now look forward to FOMC meeting minutes for a fresh directional impetus.

The USD/JPY pair extended its steady intraday decline and dropped to fresh session lows in the last hour, eroding a part of the previous session's strong up-move to two-week tops.

The prevalent cautious mood around equity markets, amid a further escalation in the recent US-China trade tensions, underpinned the Japanese Yen's relative safe-haven status and turned out to be one of the key factors exerting some fresh downward pressure.

The global risk sentiment took a hit after the Trump administration was reported to blacklist Chinese surveillance technology firm - Hikvision and is also considering cutting off the flow of vital American technology to as many as five Chinese companies.

Bearish traders seemed rather unaffected by Wednesday's release of Japanese trade balance data, showing that exports contracted for the fifth month in April, with some renewed US Dollar strength also doing little to provide any meaningful boost.

Currently trading around the 110.35 region, testing session lows, market participants now look forward to Wednesday's important release of FOMC meeting minutes, which might influence the near-term USD price dynamics and provide a fresh directional impetus.

Technical levels to watch

USD/JPY

Overview
Today last price	110.37
Today Daily Change	-0.13
Today Daily Change %	-0.12
Today daily open	110.5

Trends
Daily SMA20	110.61
Daily SMA50	111.04
Daily SMA100	110.51
Daily SMA200	111.43

Levels
Previous Daily High	110.68
Previous Daily Low	110.02
Previous Weekly High	110.2
Previous Weekly Low	109.02
Previous Monthly High	112.4
Previous Monthly Low	110.8
Daily Fibonacci 38.2%	110.42
Daily Fibonacci 61.8%	110.27
Daily Pivot Point S1	110.11
Daily Pivot Point S2	109.73
Daily Pivot Point S3	109.45
Daily Pivot Point R1	110.78
Daily Pivot Point R2	111.06
Daily Pivot Point R3	111.44

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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