USD/JPY slides below mid-107.00s, fresh session low


  • USD/JPY once again met with some fresh supply near the 107.75-80 region.
  • Concerns about rising COVID-19 cases benefitted the safe-haven Japanese yen.
  • A subdued USD price action did little to influence or lend any support to the pair.

The USD/JPY pair failed to capitalize on its early uptick, rather met with some fresh supply and dropped to session lows, around the 107.45 region in the last hour.

Following the previous day's intraday pullback from weekly tops, the pair managed to regain some positive traction during the Asian hours on Wednesday but once again struggled to make it through the 107.75-80 supply zone.

Investors remained cautious amid concerns about the ever-increasing number of new coronavirus cases. This coupled with the possibility of renewed lockdown dampened prospects for a sharp V-shaped global economic recovery.

This, in turn, extended some support to the safe-haven Japanese yen and capped any meaningful upside for the USD/JPY pair. Meanwhile, a subdued US dollar demand also did little to impress bulls or influence the price action.

The pair has now retreated around 25 pips from daily tops, albeit remains well within this week's trading range. This makes it prudent to wait for some follow-through selling before positioning for any further downfall.

There isn't any major market-moving economic data due for release from the US. Hence, the broader market risk sentiment and the USD price dynamics might continue to play a key role in producing some trading opportunities.

Technical levels to watch

USD/JPY

Overview
Today last price 107.48
Today Daily Change -0.04
Today Daily Change % -0.04
Today daily open 107.52
 
Trends
Daily SMA20 107.23
Daily SMA50 107.41
Daily SMA100 107.82
Daily SMA200 108.4
 
Levels
Previous Daily High 107.79
Previous Daily Low 107.25
Previous Weekly High 108.16
Previous Weekly Low 107.04
Previous Monthly High 109.85
Previous Monthly Low 106.08
Daily Fibonacci 38.2% 107.58
Daily Fibonacci 61.8% 107.45
Daily Pivot Point S1 107.25
Daily Pivot Point S2 106.97
Daily Pivot Point S3 106.7
Daily Pivot Point R1 107.79
Daily Pivot Point R2 108.06
Daily Pivot Point R3 108.33

 

 

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