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

 

 

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