USD/JPY sustains the bounce around 109.30 amid USD rebound, tepid mood


  • USD/JPY remains in downside consolidation on the 109.00 level.
  • Rising covid cases in Asia hurt stocks, lifts the USD demand.
  • Gains in S&P 500 futures offer support, as focus shifts to US PPI.

Having found support at 109.00, USD/JPY attempted a recovery towards 109.50 in the overnight trades. However, the sellers fought back control, knocking off the pair to near the 109.20 region, where it now wavers.

The recovery attempts in the spot remain capped by the risk-off mood, as major Asian economies grapple with spiking covid infections, including South Korea, Japan and India. Some of these countries are back under lockdown restrictions, which is reflective of the negative tone seen in the regional indices.

However, the downbeat market mood-led revival of the haven demand for the US dollar has helped put a floor under the prices. The US dollar index recovers to 92.15, up 0.07% on the day, as of writing.

Additionally, the uptick in the S&P 500 futures combined with the stabilizing Treasury yields, following Thursday’s Fed Chair Powell-induced sell-off, renders USD/JPY supportive.

Meanwhile, on the JPY side of the equation, Japanese Chief Cabinet Secretary Katsunobu Kato said that the expert panel has agreed to firmer measures for Tokyo, Kyoto and Okinawa.   

Separately, the country’s Finance Minister Taro Aso commented that the G20s new terminology on currencies is merely a clarification. Attention now shifts towards the US PPI data, as markets absorb the dovish remarks from Fed Chair Jerome Powell.  

USD/JPY: Technical levels

USD/JPY

Overview
Today last price 109.29
Today Daily Change 0.01
Today Daily Change % 0.01
Today daily open 109.28
 
Trends
Daily SMA20 109.5
Daily SMA50 107.46
Daily SMA100 105.63
Daily SMA200 105.66
 
Levels
Previous Daily High 109.9
Previous Daily Low 109
Previous Weekly High 110.97
Previous Weekly Low 109.37
Previous Monthly High 110.97
Previous Monthly Low 106.37
Daily Fibonacci 38.2% 109.35
Daily Fibonacci 61.8% 109.56
Daily Pivot Point S1 108.88
Daily Pivot Point S2 108.49
Daily Pivot Point S3 107.98
Daily Pivot Point R1 109.79
Daily Pivot Point R2 110.3
Daily Pivot Point R3 110.69

 

 

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