USD/JPY snaps three-day downtrend towards regaining 109.00 as Tokyo open welcomes risk-on mood

  • USD/JPY keeps bounce off two-week low, refreshes intraday top of late.
  • Market sentiment improved as downbeat US jobs defy odds of Fed’s tapering.
  • Vaccine news, covid updates and ongoing Iran nuclear deal add to the optimism.
  • An absence of major data/events highlights risk-catalysts for near-term direction.

USD/JPY refreshes intraday high with 108.78, stay on the front foot, as markets in Tokyo open for Monday. In doing so, the risk-barometer portrays the traders’ upbeat mood after Friday’s US data back the extension of easy money policies. Also on the positive side could be the latest updates concerning the coronavirus (COVID-19), Iran and vaccinations.

Risk-on it is…

The disappointment over Friday’s US monthly jobs report favored equity buyers and dragged down the US dollar index (DXY) the previous day. However, receding challenges to the US Federal Reserve’s (Fed) easy money policies triggered market optimism, which in turn propels USD/JPY, afterward.

It should be noted that the European Union (EU) ability to sign a major vaccine deal with the Pfizer-BioNTEch as well as Iran’s no dumping of the nuclear talks with the US, surprisingly, add to the latest risk-on mood.

Alternatively, Brexit jitters and political uncertainty in the UK, as well as the covid woes in Japan, test the bulls. “Japan's confirmed daily coronavirus infections topped 6,000 for the third straight day on Sunday, while the number of patients with severe symptoms rose to a record 1,144, amid the spread of more contagious variants,” said Kyodo News.

Amid these plays, US 10-year Treasury yields regain 1.60% level, up 2.1 basis points (bps), whereas S&P 500 Futures gain 0.26% while Nikkei 225 marks a 0.92% intraday gain by the press time.

Looking forward, Japan’s covid concerns may join a light calendar to dent the USD/JPY upside towards 109.00. However, market optimism seems to back the bulls, for now.

Technical analysis

Despite bouncing off a 50-day EMA level near 108.40, USD/JPY buyers need to close beyond the immediate hurdle around 108.85, comprising 21-day SMA, to convince the markets.

Additional important levels

Today last price 108.78
Today Daily Change 0.13
Today Daily Change % 0.12%
Today daily open 108.65
Daily SMA20 108.71
Daily SMA50 108.9
Daily SMA100 106.62
Daily SMA200 105.88
Previous Daily High 109.29
Previous Daily Low 108.34
Previous Weekly High 109.7
Previous Weekly Low 108.34
Previous Monthly High 110.85
Previous Monthly Low 107.48
Daily Fibonacci 38.2% 108.7
Daily Fibonacci 61.8% 108.93
Daily Pivot Point S1 108.23
Daily Pivot Point S2 107.81
Daily Pivot Point S3 107.27
Daily Pivot Point R1 109.18
Daily Pivot Point R2 109.71
Daily Pivot Point R3 110.13



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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD holds steady above 1.2100, Fed’s Jerome Powell eyed

EUR/USD is holding the higher ground above 1.2100 ahead of Wednesday’s European session. EUR/USD fades bounce off intraday low, snaps two-day uptrend. Sluggish markets prevail ahead of the Chinese data and key FOMC decision. 


GBP/USD rises toward 1.41 after strong UK CPI

GBP/USD is trading near 1.41, rising after the UK reported an annual inflation rate of 2.1% in May, beating estimates and raising the chances of a BOE rate hike. The focus remains on the Federal Reserve's decision later in the day.


Gold: Bulls attempting last dance ahead of Jerome Powell?

Gold price fell for the third day in a row on Tuesday and tested the $1850 psychological support before recovering slightly to near the $1860 region.  Fed decision, Jerome Powell’s policy outlook to determine gold’s next direction.

Gold News

Shiba Inu ready to reverse to $0.0000050

SHIB price faces stiff resistance ahead. Shiba Inu has had a difficult time recovering, suggesting that it may soon face rejection. In the following video, FXStreet's analysts evaluate where SHIB price could be heading next as Shiba Inu gets weaker.

Read more

Federal Reserve Preview: First up, then down? Playbook for trading the Fed

To taper or not to taper? That is the question for markets ahead of the Federal Reserve's all-important June meeting. Fed Chair Powell will likely shoot down any talk of tapering the bank's bond buys. Highly volatile trading could see the greenback first drop.

Read more