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

USD/JPY

Overview
Today last price 109.16
Today Daily Change 0.22
Today Daily Change % 0.20
Today daily open 108.94
 
Trends
Daily SMA20 108.6
Daily SMA50 107.86
Daily SMA100 107.6
Daily SMA200 109.03
 
Levels
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. 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


Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures