USD/JPY steadies near 107.50 ahead of US PMI data

  • 10-year US Treasury bond yield erases more than 2% on Monday.
  • Greenback gathers strength to limit the pair's losses.
  • Markit Composite PMI in the US is expected to slump below 50 in September.

The USD/JPY pair posted modest losses last week and pushed lower on Monday to touch its lowest level in nearly two weeks at 107.32. Following that drop, the pair staged a rebound and was last seen trading at 107.46, losing 0.09% on a daily basis.

Markets turn risk-averse on Monday

The dismal market sentiment at the start of the week seems to be ramping up the demand for the safe-haven JPY and putting the pair under bearish pressure. 

The uncertainty surrounding the US-China trade conflict following reports of Chinese delegation calling off the planned visit to US fam states last Friday keeps investors away from risky assets. Moreover, heightened geopolitical tensions in the Middle East seem to be hurting the risk sentiment as well. Reflecting the dismal mood, the 10-year US Treasury bond yield is now losing 2.8% on a daily basis and major European equity indexes are suffering heavy losses. 

On the other hand, with the disappointing Purchasing Managers Index (PMI) figures from the eurozone and Germany pushing participants away from the shared currency, the Greenback finds demand on Monday and helps the pair find support. 

Ahead of the IHS Markit's preliminary Manufacturing, Services and Composite PMI releases for September, the US Dollar Index is adding 0.26% on the day at 98.72. Markets expect the Composite PMI to drop below the 50 handle. If that reading were to disappoint, concerns over a recession in the US could trigger more risk-off flows and cause the pair to extend its daily losses.

Technical levels to watch for


Today last price 107.43
Today Daily Change -0.13
Today Daily Change % -0.12
Today daily open 107.56
Daily SMA20 107.11
Daily SMA50 107.11
Daily SMA100 107.95
Daily SMA200 109.29
Previous Daily High 108.09
Previous Daily Low 107.53
Previous Weekly High 108.48
Previous Weekly Low 107.48
Previous Monthly High 109.32
Previous Monthly Low 104.45
Daily Fibonacci 38.2% 107.74
Daily Fibonacci 61.8% 107.87
Daily Pivot Point S1 107.36
Daily Pivot Point S2 107.16
Daily Pivot Point S3 106.8
Daily Pivot Point R1 107.92
Daily Pivot Point R2 108.28
Daily Pivot Point R3 108.48



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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD at daily lows, dragged by Sterling

Turmoil around Brexit and the absence of any other relevant catalyst weighs on the common currency, EUR/USD battling with 1.1120.


GBP/USD loses 1.2900 as Parliament says “NO”

The UK Parliament has rejected PM Johnson’s time table, lifting odds of an upcoming election in the kingdom. Volatile trading ahead of more clarity as the drama continues.


USD/JPY holds steady above mid-108.00s

The USD/JPY pair failed to capitalize on the early uptick to multi-day tops and is currently placed at the lower end of its daily trading range, just above mid-108.00s.


Gold erases daily gains, eyes $1480

Gold failed to hold to gains and pulled back, approaching again the $1480 area. Earlier today the ounce rose to $1488 and as of writing trades at $1483, flat for the day but now with a bearish intraday bias.

Gold News

Top 3 price prediction BTC, ETH, XRP: CFTC takes a surprisingly bold step to move cryptos forward

The CFTC is open to Ethereum futures without anyone picking-up the ball. XRP is currently the only bullish option currently in the Top Three. Current volatility levels have last been seen in May.

Read more