USD/JPY retreats from six-day highs below 130.00

USD/JPY back into negative territory after a spike following US data.
US PMI S&P Global recovers in January, still below 50.
US Dollar weakens during the American session amid risk appetite.

Matías Salord FXStreet

The USD/JPY spiked to 131.21, following the release of US economic data but then pulled back toward 130.00 as stocks turned positive on Wall Street. The improvement in risk sentiment weighed on the US dollar.

Data released on Tuesday showed the PMI S&P Global Manufacturing rose in January according to preliminary numbers from 46.2 to 46.8, above the 46.1 of market consensus. The Service index climbed from 44.7 to 46.6, surpassing expectations of 44.5. Immediately after the release, the US dollar peaked but only to retreat later.

In Wall Street, after a negative opening main indexes are flat. Risk appetite and a retreat in US yields pushed USD/JPY to the downside. The pair is testing levels under 130.00, looking at the daily low it hit on Asian hours at 129.72.

Again, the 20-day Simple Moving Average, currently at 130.90, capped the upside. The main trend is bearish although in the short term, the Dollar is correcting higher. It continues to be unable to hold above 131.00. If it manages to do so, a deeper recovery seems likely.

Technical levels

USD/JPY

Overview
Today last price	130.35
Today Daily Change	-0.34
Today Daily Change %	-0.26
Today daily open	130.69

Trends
Daily SMA20	131.01
Daily SMA50	134.62
Daily SMA100	139.99
Daily SMA200	136.73

Levels
Previous Daily High	130.89
Previous Daily Low	129.04
Previous Weekly High	131.58
Previous Weekly Low	127.22
Previous Monthly High	138.18
Previous Monthly Low	130.57
Daily Fibonacci 38.2%	130.19
Daily Fibonacci 61.8%	129.75
Daily Pivot Point S1	129.53
Daily Pivot Point S2	128.36
Daily Pivot Point S3	127.68
Daily Pivot Point R1	131.37
Daily Pivot Point R2	132.06
Daily Pivot Point R3	133.22

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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