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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD at daily lows, dragged by Sterling

Turmoil around Brexit and the absence of any other relevant catalyst weighs on the common currency, EUR/USD battling with 1.1120.

EUR/USD News

GBP/USD loses 1.2900 as Parliament says “NO”

The UK Parliament has rejected PM Johnson’s time table, lifting odds of an upcoming election in the kingdom. Volatile trading ahead of more clarity as the drama continues.

GBP/USD News

USD/JPY holds steady above mid-108.00s

The USD/JPY pair failed to capitalize on the early uptick to multi-day tops and is currently placed at the lower end of its daily trading range, just above mid-108.00s.

USD/JPY News

Gold heads higher as Brexit uncertainty prevails over trade-deal hopes

In the final hour of trade on Wall Street, spot gold was moving in on the 1490 level, trading higher by 0.22% having travelled between a low of $1480.91 and a high of $1489.04.

Gold News

Top 3 price prediction BTC, ETH, XRP: CFTC takes a surprisingly bold step to move cryptos forward

The CFTC is open to Ethereum futures without anyone picking-up the ball. XRP is currently the only bullish option currently in the Top Three. Current volatility levels have last been seen in May.

Read more

Forex MAJORS

Cryptocurrencies

Signatures