USD/JPY slides farther below 108.00 mark, over 1-week lows


  • USD/JPY witnessed some follow-through selling on the first day of a new week.
  • Reviving safe-haven demand underpinned the JPY and exerted some fresh pressure.
  • Technical selling below 200-DMA contributed to the slide amid a subdued USD demand.

The USD/JPY pair weakened farther below the 108.00 round-figure mark and dropped to over one-week lows in the last hour.

The pair extended last week's retracement slide from the 109.40 region and witnessed some follow-through selling for the third consecutive session on Monday – also marking its fourth day of a negative move in the previous five.

The US dollar remained depressed in the wake of the Fed's announcement last week to provide up to $2.3 trillion of additional loans to support the economy and Friday's softer-than-expected US consumer inflation figures.

On the other hand, the safe-haven Japanese yen was being supported by persistent worries over the economic fallout from the coronavirus pandemic and got an additional boost in reaction to the rising confirmed cases in China.

China reported the highest number of new daily cases in nearly six weeks and fueled fears about the second wave of COVID-19 outbreak. The same was evident from the risk-off mood in the equity markets, which underpinned demand for traditional safe-haven currencies.

This coupled with possibilities of some technical selling on a sustained weakness back below the very important 200-day SMA further seems to have aggravated the bearish pressure amid relatively thin liquidity conditions.

Most Asain and European markets will remain closed on account of Easter Monday. Hence, developments surrounding the coronavirus saga might continue to influence the broader market risk sentiment and produce some meaningful trading opportunities.

Technical levels to watch

USD/JPY

Overview
Today last price 107.84
Today Daily Change -0.62
Today Daily Change % -0.57
Today daily open 108.46
 
Trends
Daily SMA20 108.86
Daily SMA50 108.75
Daily SMA100 108.98
Daily SMA200 108.35
 
Levels
Previous Daily High 108.6
Previous Daily Low 108.33
Previous Weekly High 109.38
Previous Weekly Low 108.21
Previous Monthly High 111.72
Previous Monthly Low 101.18
Daily Fibonacci 38.2% 108.43
Daily Fibonacci 61.8% 108.49
Daily Pivot Point S1 108.32
Daily Pivot Point S2 108.19
Daily Pivot Point S3 108.06
Daily Pivot Point R1 108.59
Daily Pivot Point R2 108.73
Daily Pivot Point R3 108.86

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD met sellers on another approach to 0.7340

The greenback soared following the release of upbeat US data, resulting in AUD/USD falling back below the 0.7300 threshold. Australian Trade Balance coming up next.

AUD/USD News

XAU/USD attempting to set a bottom at $1,830 multi-month low

Gold futures have finally broken support at $1,850 on Monday, plunging to fresh four-month lows at $1,830 amid a broadly stronger US dollar. XAU/USD has managed to find buyers at the mentioned $1,830 although it remains about 1.6% lower on the day.

Gold news

USD/JPY regains 104.50, could extend recovery

The USD/JPY pair hit a one-week high of 104.63 and is set to extend gains on persistent dollar’s strength. The positive tone of equities provide additional support to the pair.

USD/JPY News

Bitcoin final leg to $20,000 lingers, as crypto bull cycle rockets

Cryptocurrencies across the board had a memorable weekend session, with most of them rallying to new yearly highs. Ethereum, for instance, hit highs of $585 for the first time since 2018. On the other hand, Ripple brushed shoulders with $0.5.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures