USD/JPY sits near weekly tops, comfortably above 109.00 handle

  • Renewed trade optimism helped the pair to reverse an early dip.
  • Surging US bond yields remained supportive of the positive move.
  • A subdued USD price action might keep a lid on any strong gains.

The USD/JPY pair built on its goodish intraday bounce and is currently placed near the top end of the weekly trading range, around the 109.20 region.
The pair managed to attract some decent dip-buying interest near the 108.65 region and witnessed a dramatic intraday turnaround after China's Commerce Ministry said that the US and China have agreed to cancel the tariffs imposed during their prolonged trade war.

Risk-on mood remained supportive

Investors cheered signs of progress in US-China trade talks and triggered a strong rally in the global equity markets, which weighed heavily on the Japanese Yen's safe-haven demand and turned out to be one of the key factors driving the pair higher.
Bullish traders further took cues from a strong upsurge in the US Treasury bond yields. In fact, the yield on the benchmark 10-year US government bond yield rallied over 3.5%, albeit a subdued US Dollar price action failed to provide any additional boost to the major.
Hence, it will be prudent to wait for a sustained move beyond the very important 200-day SMA and the recent swing highs resistance near the 109.25-30 region before traders start positioning for any further near-term appreciating move amid relatively thin US economic docket on Thursday.

Technical levels to watch


Today last price 109.16
Today Daily Change 0.22
Today Daily Change % 0.20
Today daily open 108.94
Daily SMA20 108.6
Daily SMA50 107.86
Daily SMA100 107.6
Daily SMA200 109.03
Previous Daily High 109.19
Previous Daily Low 108.82
Previous Weekly High 109.29
Previous Weekly Low 107.89
Previous Monthly High 109.29
Previous Monthly Low 106.48
Daily Fibonacci 38.2% 108.96
Daily Fibonacci 61.8% 109.05
Daily Pivot Point S1 108.78
Daily Pivot Point S2 108.61
Daily Pivot Point S3 108.4
Daily Pivot Point R1 109.15
Daily Pivot Point R2 109.36
Daily Pivot Point R3 109.52



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

GBP/USD consolidates losses below 1.3150 amid a tighter election poll

GBP/USD is trading below 1.3150, consolidating its losses after YouGov's MRP poll showed a tighter Conservative majority ahead of the UK elections on Thursday. Trade headlines and the Fed decision are also awaited.


EUR/USD remains pressured below 1.11 amid trade uncertainty, ahead of the Fed

EUR/USD is trading below 1.11, consolidating its gains. Uncertainty about the planned US tariffs on China looms and tension is mounting ahead of US inflation and the all-important Fed decision.


Forex Today: Boris gets a blow from big poll, tariff threat looms, focus on the Fed

President Donald Trump has yet to decide on the December 15 tariffs, according to the Wall Street Journal. On the other hand, the paper says that negotiators are laying the groundwork for a deal.

Read more

Gold stalls two-day winning streak on the Fed day, trade jitters continue

Gold prices register a mild loss of -0.05% while hovering below $ 1465 on Wednesday. The yellow metal seems to have lacked buying interest ahead of the key monetary policy meeting by the US Federal Reserve (Fed).

Gold News

USD/JPY: 200-hour EMA questions immediate rising trend-channel

USD/JPY recently took a U-turn from 200-hour Exponential Moving Average (EMA). Even so, it stays well within the two-day-old rising trend-channel formation. The pair trades around 108.75 at the press time on Wednesday.