USD/JPY technical analysis: At session lows after facing rejection at key resistance

USD/JPY on Tuesday failed to close above resistance at 106.78.
The pair is on the defensive at press time, still, the outlook remains neutral.

Omkar Godbole FXStreet Contributor

USD/JPY is facing downside pressures a day after failing to close above the former support-turned-resistance of 106.78 (June 25 low).

As of writing, the pair is trading at 106.30, the lowest point of the day.

The pair failed to take out resistance at 106.78 on Tuesday, but closed the day with 1.37% gains, marking a sharp reversal from the slow downturn from 107.09 to 105.05 seen in the preceding five days.

So, with the pair holding well above Tuesday's low of 105.07, the immediate bias remains neutral.

A close below 105.05 would revive the bearish outlook. Meanwhile, the bulls need a break above Tuesday's high of 106.98.

Daily chart

Trend: Neutral

Pivot points

1. R3 109.37
2. R2 108.17
3. R1 107.46
PP 106.26
1. S1 105.54
2. S2 104.35
3. S3 103.63

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold stays bid, still below $5,100

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.