USD/JPY reverses early dip, holds steady above mid-108.00s


  • The recent USD bullish run got an additional boost from upbeat US Q2 GDP print.
  • Trade optimism undermined JPY's safe-haven demand and remained supportive.
  • Investors now seemed reluctant ahead the central bank meetings – BoJ and the Fed.

The USD/JPY pair reversed an early Asian session dip and is currently placed at the top end of its daily trading range, around the 108.65 region.

The pair kicked off the new week on the defensive and pulled away from Friday's 2-1/2 week tops, touched in the aftermath of upbeat US GDP growth figures for the second quarter of 2019. The latest US GDP report showed that the economy expanded by 2.1% annualized pace during the three months to June and further lowered chances of an aggressive interest rate cut move by the Fed.

The data lifted the US Dollar to a two-month high and assisted the pair to build on its recent positive momentum, albeit lacked any strong bullish conviction. Investors now seemed reluctant to place any aggressive bets and preferred to wait on the sidelines ahead of the central bank meetings - starting with the BoJ policy update on Tuesday and the highly anticipated Fed decision on Wednesday.

Ahead of the key event risks, the prevalent cautious mood underpinned the Japanese Yen's safe-haven demand and exerted some downward pressure at the start of a new trading week. The downside, however, remained limited amid some renewed optimism over a possible resolution to the prolonged US-China trade dispute.

With investors still awaiting fresh trade-related updates, it will be prudent to wait for a sustained move in either direction before traders start positioning for any meaningful intraday momentum amid absent relevant market-moving US economic releases on Monday.

Technical levels to watch

USD/JPY

Overview
Today last price 108.66
Today Daily Change -0.01
Today Daily Change % -0.01
Today daily open 108.67
 
Trends
Daily SMA20 108.18
Daily SMA50 108.42
Daily SMA100 109.75
Daily SMA200 110.55
Levels
Previous Daily High 108.83
Previous Daily Low 108.56
Previous Weekly High 108.83
Previous Weekly Low 107.7
Previous Monthly High 108.8
Previous Monthly Low 106.78
Daily Fibonacci 38.2% 108.73
Daily Fibonacci 61.8% 108.66
Daily Pivot Point S1 108.54
Daily Pivot Point S2 108.42
Daily Pivot Point S3 108.27
Daily Pivot Point R1 108.82
Daily Pivot Point R2 108.96
Daily Pivot Point R3 109.09

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

AUD/USD approaches 0.6900 ahead of Australian inflation

AUD/USD approaches 0.6900 ahead of Australian inflation

The Aussie is among the best performers against the Greenback this week, trading at fresh 2024 highs, not far from the 0.6900 mark. Australian inflation data taking centre stage in the Asian session.

AUD/USD News
EUR/USD extend recovery amid persistent USD weakness

EUR/USD extend recovery amid persistent USD weakness

The Euro benefited from the broad US Dollar’s weakness on Tuesday, trimming weekly losses and looking to retest the 1.1200 level. Additional gains out of the table amid discouraging European data.

EUR/USD News
Gold's unstoppable run extends beyond $2,650

Gold's unstoppable run extends beyond $2,650

Gold price keeps posting record highs on a daily basis, now comfortable above $2,650. Poor United States data fueled speculation the Federal Reserve will trim rates by another 50 bps when it meets in November.

Gold News
Crypto Today: Bitcoin, Ethereum and XRP consolidate as SUI continues impressive run

Crypto Today: Bitcoin, Ethereum and XRP consolidate as SUI continues impressive run

Bitcoin traded around $63,600 on Tuesday, as prices appear to be consolidating within the $62,000 and $64,700 key levels. On-chain data shows that the consolidation may be due to profit-taking by holders and mild Bitcoin ETF net inflows of $4.5 million, per Farside Investors data.

Read more
RBA widely expected to keep key interest rate unchanged amid persisting price pressures

RBA widely expected to keep key interest rate unchanged amid persisting price pressures

The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures