USD/JPY sees aggressive selling, targets 108.00 as risk-off intensifies


  • Renewed weakness in S&P 500 futures and Treasury yields knocks-off USD/JPY.
  • Risk-off in vogue amid fresh US-China trade worries following Trump’s tweets.
  • All eyes on US CPI and trade-related news for fresh impetus.

The USD/JPY pair witnessed a 20-pips drop over the last hour, as the buying interest gathered pace around the safe-haven Yen, with the European traders hitting their desks and reacting to the renewed worries over the US-China trade spat.

Risk-off remains at full steam heading into the European open, as markets remain jittery after the US President Trump took a tough stance on China, citing that he had no interest in moving ahead unless Beijing agrees again to four or five "major points".

Further, the sentiment also received a fresh blow following the latest report citing sources that the expectations for progress toward ending the trade war from the upcoming Trump-XI meeting are low.

Amid intensifying risk-aversion, the spot tracked a fresh round of selling in the S&P 500 futures and Treasury yields and hit fresh three-day lows at 108.31. In the day ahead, the risks remain skewed towards a test of the 108 handle, as suggested by the technical set up.

“The spot charted back-to-back daily candles with long upper shadows. A candle with a long upper shadow is considered a sign of buyer exhaustion. A break below 108.31 (Monday’s low) today would validate the buyer exhaustion near 108.80 signaled by the daily candles with long upper shadows and could yield a drop to fresh 2019 lows below 107.81,” FXStreet’s Analyst, Omkar Godbole, notes.

The focus now shifts towards the US CPI report for the month of May, with the headline figures likely to soften while the US-China trade-related headlines will continue to influence the major.

Technical levels to watch

USD/JPY

Overview
Today last price 108.33
Today Daily Change -0.18
Today Daily Change % -0.17
Today daily open 108.52
 
Trends
Daily SMA20 109.2
Daily SMA50 110.44
Daily SMA100 110.53
Daily SMA200 111.28
Levels
Previous Daily High 108.8
Previous Daily Low 108.35
Previous Weekly High 108.62
Previous Weekly Low 107.81
Previous Monthly High 111.71
Previous Monthly Low 108.23
Daily Fibonacci 38.2% 108.63
Daily Fibonacci 61.8% 108.52
Daily Pivot Point S1 108.31
Daily Pivot Point S2 108.1
Daily Pivot Point S3 107.86
Daily Pivot Point R1 108.76
Daily Pivot Point R2 109.01
Daily Pivot Point R3 109.22

 

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD: Bulls in control above 1.1100 starting out ECB week

Following the bounce from near 1.1100 in early Asia, EUR/USD has entered a phase of consolidated near 1.1140 region ahead of the European open. Bulls await a fresh impetus for the next push above the 1.1150 mark ahead of Eurozone/ US PMIs.

EUR/USD News

GBP/USD recedes from three-week top above 1.2400, UK Manufacturing PMI eyed

GBP/USD prints three-day winning streak amid broad US dollar weakness. Calls of further help to British employees add to the upside momentum. Downbeat Brexit headlines confront the UK’s coronavirus optimism. The UK/US PMIs will join qualitative catalysts.

GBP/USD News

FX Today: USD hit by escalating US riots, risk-on mood; US ISM PMI eyed amid light trading

The US dollar took a beating across the board starting out a new month/ week, as markets breathed a sigh of relief on the US’ softer stance on China. The dollar weakness was also backed by the escalating riots in the US cities, with curfews imposed on major cities. 

Read more

Gold: Teasing a rectangle breakout, $1750 in sight

Gold bulls gathering pace for the next push higher. The extension of last week’s rally in the yellow metal is mainly driven by the sell-off in the US dollar across the board, in the wake of US-China trade war relief and escalating US riots.

Gold News

WTI: Overbought RSI challenges the bulls above $35.50

WTI seesaws around 7-week-old resistance line, retreats from highest since March 11. A short-term ascending trend line on the bears’ radars during the pullback. 100-day SMA, 61.8% Fibonacci retracement together offers strong upside barrier.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures