USD/JPY slides to session lows, bears await a break below 105.00 mark

USD/JPY drifts into the negative territory for the fourth consecutive session on Tuesday.
A pullback in the US bond yields, dovish Fed expectations capped the attempted USD bounce.
Investors now eye second-tier US economic data for some short-term trading opportunities.

Haresh Menghani FXStreet

The USD/JPY pair dropped to its lowest level since March 13, with bears now awaiting a sustained break below the key 105.00 psychological mark.

The pair failed to capitalize on its attempted recovery move, instead met with some fresh supply near the 105.70 region. The USD/JPY pair drifted into the negative territory for the fourth consecutive session, also marking the fifth day of a downtick in the previous six, and was pressured by a combination of factors.

Despite the optimism over the next round of the US fiscal measures, the US dollar struggled to preserve its early gains amid an intraday pullback in the US Treasury bond yields. This coupled with speculations of additional stimulus by the Fed further collaborated towards capping the intraday gains for the greenback.

Apart from this, a slight deterioration in the global risk sentiment – as depicted by indications of a negative opening in the US equity markets – underpinned the Japanese yen's safe-haven demand. This, in turn, collaborated to the USD/JPY pair's intraday slide of around 60 pips and might have set the stage for further declines.

Market participants now look forward to the US economic data for some impetus. Tuesday’s US economic docket highlights the release of the Conference Board's Consumer Confidence Index and Richmond Manufacturing Index. This along with the broader risk sentiment might influence the JPY price dynamics and produce some trading opportunities.

Technical levels to watch

USD/JPY

Overview
Today last price	105.13
Today Daily Change	-0.24
Today Daily Change %	-0.23
Today daily open	105.37

Trends
Daily SMA20	107.1
Daily SMA50	107.41
Daily SMA100	107.57
Daily SMA200	108.33

Levels
Previous Daily High	106.13
Previous Daily Low	105.12
Previous Weekly High	107.54
Previous Weekly Low	105.68
Previous Monthly High	109.85
Previous Monthly Low	106.08
Daily Fibonacci 38.2%	105.51
Daily Fibonacci 61.8%	105.74
Daily Pivot Point S1	104.95
Daily Pivot Point S2	104.52
Daily Pivot Point S3	103.93
Daily Pivot Point R1	105.96
Daily Pivot Point R2	106.56
Daily Pivot Point R3	106.98

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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