- USD/JPY once again failed near 50-day SMA hurdle amid reviving safe-haven demand.
- Escalating US-China tensions weighed on investors’ sentiment and benefitted the JPY.
- The intraday slide seemed rather unaffected by a modest pickup in the USD demand.
The USD/JPY pair edged lower through the Asian session on Friday and was last seen trading near the lower end of its daily range, just below mid-107.00s.
The pair continued with its struggle to decisively break through the 50-day SMA barrier near the 107.85-90 region and came under some fresh selling pressure on the last trading day of the week. Concerns about worsening US-China relations took its toll on the global risk sentiment. This, in turn, benefitted the Japanese yen's (JPY) safe-haven status and exerted some pressure on the USD/JPY pair.
Diplomatic tensions between the world's two largest economies escalated further after Zhang Yesui, speaker for the National People’s Congress (NPC), said on Thursday that China will firmly defend its interests if the US does things that undermine China's core interests. Adding to this, China's decision to impose new Hong Kong security law further fueled concerns about a major US-China tussle.
The JPY was further underpinned by the Bank of Japan decided to leave its monetary policy unchanged during the unscheduled meeting held this Friday. The Japanese central bank announced targeted loans for small and mid-sized firms to combat the negative impact from the coronavirus pandemic.
With reviving safe-haven demand turning out to be an exclusive driver of the pair's downfall on Friday, bulls seemed rather unimpressed by some renewed US dollar buying interest. The USD/JPY pair has now dropped to the lower end of a multi-day-old trading range and a subsequent slide below the 107.30 will set the stage for a further intraday depreciating move amid absent relevant market moving economic releases from the US.
Technical levels to watch
|Today last price||107.44|
|Today Daily Change||-0.17|
|Today Daily Change %||-0.16|
|Today daily open||107.61|
|Previous Daily High||107.85|
|Previous Daily Low||107.49|
|Previous Weekly High||107.77|
|Previous Weekly Low||106.5|
|Previous Monthly High||109.38|
|Previous Monthly Low||106.36|
|Daily Fibonacci 38.2%||107.71|
|Daily Fibonacci 61.8%||107.63|
|Daily Pivot Point S1||107.45|
|Daily Pivot Point S2||107.29|
|Daily Pivot Point S3||107.08|
|Daily Pivot Point R1||107.81|
|Daily Pivot Point R2||108.01|
|Daily Pivot Point R3||108.17|
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.