USD/JPY stays in the red near 109.35-30 horizontal support

USD/JPY added to the post-NFP losses and edged lower for the second consecutive session.
A cautious mood benefitted the safe-haven JPY and exerted some pressure on the major.
A goodish pickup in the US bond yields underpinned the USD and might help limit losses.

Haresh Menghani FXStreet

The USD/JPY pair remained depressed through the first half of the European session and dropped to fresh daily lows, around the 109.35 region in the last hour.

The pair added to Friday's softer NFP-inspired losses and witnessed some follow-through selling on the first day of a new trading week. This marked the second consecutive day of downfall and was exclusively sponsored by a cautious mood around the equity markets, which tends to benefit the safe-haven Japanese yen. That said, a combination of factors should help limit any further losses for the USD/JPY pair, at least for the time being.

The latest US monthly jobs report tempered expectations that the Fed will tighten monetary policy sooner rather than later. That said, concerns about rising inflationary pressure acted as a tailwind for the US bond yields ahead of this week's release of the latest US consumer inflation figures on Thursday. This, in turn, extended some support to the US dollar and might hold traders from placing aggressive bearish bets around the USD/JPY pair.

Moreover, investors remain worried that an extension of the state of emergency in Tokyo and eight other prefectures could hinder Japan's fragile economic recovery. This might turn out to be another factor that might extend some support to the USD/JPY pair. Hence, it will be prudent to wait for some strong follow-through selling before positioning for any further depreciating move amid absent relevant market moving economic releases from the US.

Technical levels to watch

USD/JPY

Overview
Today last price	109.37
Today Daily Change	-0.11
Today Daily Change %	-0.10
Today daily open	109.48

Trends
Daily SMA20	109.28
Daily SMA50	109.22
Daily SMA100	107.77
Daily SMA200	106.2

Levels
Previous Daily High	110.33
Previous Daily Low	109.36
Previous Weekly High	110.33
Previous Weekly Low	109.33
Previous Monthly High	110.2
Previous Monthly Low	108.34
Daily Fibonacci 38.2%	109.73
Daily Fibonacci 61.8%	109.96
Daily Pivot Point S1	109.12
Daily Pivot Point S2	108.76
Daily Pivot Point S3	108.15
Daily Pivot Point R1	110.09
Daily Pivot Point R2	110.69
Daily Pivot Point R3	111.05

Author

Haresh Menghani

FXStreet

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

AUD/USD hangs close to monthly lows, still defends 0.7100 ahead of Fed decision

AUD/USD retains its negative bias for the third straight day, defending 0.7100 while trading close to a monthly low in Wednesday's Asian session on Wednesday. The US Dollar stands firm near a two-week high as the anticipated Fed rate hike and oil-driven inflation fears continue to push US bond yields to a multi-year high. Furthermore, escalating Middle East tensions benefit the safe-haven buck and weigh on the risk-sensitive Aussie.

USD/JPY holds firm above 155.00, awaits Fed policy announcements

USD/JPY climbs to a fresh one-week high above 155.00 in the Asian session on Wednesday amid a bullish US Dollar. Oil-driven inflation fears, along with the anticipated Fed rate hike, continue to support surging US bond yields. Moreover, rising US-Iran tensions underpin the USD's reserve currency status. The pair, however, remains below the mid-155.00s as bulls seem hesitant ahead of the Fed decision later today and the BoJ meeting, starting on Thursday.

Gold traders seem noncommittal below $4,350; eyes Fed rate decision

Gold clings to modest intraday gains through the first half of the European session, albeit it lacks follow-through buying and remains below $4,350. The US Dollar eases from a two-week high amid some profit-taking, offering support to the commodity. Traders, however, seem hesitant to place aggressive directional bets and opt to wait on the sidelines heading into the key central bank event risk.

Cardano's bearish breakout warns of a 15% downside risk

Cardano (ADA) hovers around $0.1900 at press time on Wednesday after a 6% decline the previous day, breaking below a crucial support level. Declining on-chain activity across the Cardano ecosystem, with reduced transaction count and Real Economic Value (REV), suggests waning user demand.

Fed decision in focus

Starting with the most important, the Fed decision. Heading into the event, data showed a rather punchy US August jobs report, which, you will likely recall, triggered a hawkish Fed rate repricing in rates markets. However, the recent US August CPI print mattered more.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.