USD/JPY struggles near 108.00 handle, weekly lows


  • The USD added to the overnight losses led by Powell's dovish comments.
  • Fading safe-haven demand weigh on the JPY and helped limit the downside.
  • Thursday's key focus will be on the latest US consumer inflation figures.

The USD/JPY pair dropped to fresh weekly lows during the Asian session on Thursday, albeit now seems to have stabilized around the 108.00 handle.

The pair remained under some heavy selling pressure for the second consecutive session on Thursday and extended the overnight sharp pullback from six-week tops, triggered by the Fed Chair Jerome Powell's dovish sounding remarks in the prepared statement for the semi-annual Congressional testimony. 

Powell said that uncertainties continue to dim the outlook and also highlighted the risk that weak inflation will be persistent. Adding to this, the June FOMC meeting minutes revealed that many policymakers judged additional monetary stimulus would be needed soon and revived hopes for an aggressive rate cut.

This was evident from a fresh leg of a sharp downfall in the US Treasury bond yields, which continued undermining the US Dollar demand and kept exerting pressure on the major, though positive equities weighed on the Japanese Yen's safe-haven status and helped limit the downside, at least for the time being. 

Moving ahead, Thursday important release of the latest US consumer inflation figures for June, followed by the second day of Powell's testimony will now be looked upon to grab some meaningful trading opportunities later during the North-American session. 

Technical levels to watch

USD/JPY

Overview
Today last price 108.02
Today Daily Change -0.44
Today Daily Change % -0.41
Today daily open 108.46
 
Trends
Daily SMA20 108.05
Daily SMA50 108.92
Daily SMA100 110.14
Daily SMA200 110.82
Levels
Previous Daily High 109
Previous Daily Low 108.34
Previous Weekly High 108.64
Previous Weekly Low 107.53
Previous Monthly High 108.8
Previous Monthly Low 106.78
Daily Fibonacci 38.2% 108.59
Daily Fibonacci 61.8% 108.75
Daily Pivot Point S1 108.21
Daily Pivot Point S2 107.95
Daily Pivot Point S3 107.56
Daily Pivot Point R1 108.86
Daily Pivot Point R2 109.25
Daily Pivot Point R3 109.51

 

 

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