USD/JPY struggles for a firm direction, holds steady below 109.00 mark

USD/JPY reversed an early dip to mid-108.00s, albeit lacked any strong follow-through.
Investors refrained from placing fresh bets amid worries over the coronavirus pandemic.

Haresh Menghani FXStreet

The USD/JPY pair struggled to capitalize on its intraday recovery move and is currently placed in the neutral territory, just below the 109.00 round-figure mark.

Investors turned cautious after the New York state – the centre of the US outbreak – and the United Kingdom announced their highest daily death toll on Tuesday, which provided a modest lift to the Japanese yen's safe-haven status.

The pair extended the previous day's downfall and witnessed some follow-through weakness during the early Asian session on Wednesday, albeit managed to find some support near mid-108.00s amid a strong pickup in the US dollar demand.

The pair recovered around 50 pips from daily swing lows but lacked any strong follow-through as traders refrained from placing aggressive bets, rather preferred to wait on the sidelines ahead of the release of the FOMC meeting minutes.

Apart from this, the key focus will remain on the overall coronavirus pandemic situations, which might continue to influence the broader market risk sentiment and play a key role in driving the pair's momentum amid absent relevant market-moving economic releases.

Technical levels to watch

USD/JPY

Overview
Today last price	108.82
Today Daily Change	0.05
Today Daily Change %	0.05
Today daily open	108.77

Trends
Daily SMA20	108.43
Daily SMA50	108.77
Daily SMA100	108.98
Daily SMA200	108.34

Levels
Previous Daily High	109.28
Previous Daily Low	108.67
Previous Weekly High	108.73
Previous Weekly Low	106.92
Previous Monthly High	111.72
Previous Monthly Low	101.18
Daily Fibonacci 38.2%	108.9
Daily Fibonacci 61.8%	109.05
Daily Pivot Point S1	108.54
Daily Pivot Point S2	108.3
Daily Pivot Point S3	107.93
Daily Pivot Point R1	109.14
Daily Pivot Point R2	109.52
Daily Pivot Point R3	109.75

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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