• USD/JPY prints the first daily loss in five, holds lower ground near intraday bottom of late.
  • US Treasury yields struggle to justify hawkish bias from the Fed.
  • China Covid woes underpin the US Dollar’s haven demand.

USD/JPY renews its intraday low around 141.80 as it defies the four-day uptrend bullish trend during early Tuesday. In doing so, the Yen pair traces sluggish US Treasury yields amid a lack of major data/events, as well as the market’s cautious mood ahead of this week’s key catalysts scheduled for publishing on Wednesday.

That said, the US 10-year Treasury yields print the first daily loss in four, down one basis point near 3.81% by the press time, as the latest comments from the Federal Reserve (Fed) officials fail to bolster the previously hawkish bias.

With this, the US Dollar Index (DXY) drops to 107.55, down 0.25% intraday while snapping a three-day uptrend.

It’s worth noting that Federal Reserve Bank of Cleveland President Loretta Mester said in a CNBC interview, “I think we can slow down from 75 at the December meeting.” Previously, Atlanta Federal Reserve President Raphael Bostic also turned down the 75 bps move and challenged the DXY bulls.

Elsewhere, seven-month high daily coronavirus cases from China renewed supply-crunch fears and keeps the US Dollar buyers hopeful ahead of tomorrow’s preliminary readings of the monthly activity data and the Federal Open Market Committee (FOMC) Meeting Minutes.

Amid these plays, S&P 500 Futures print mild gains despite the downbeat closing of Wall Street. Further, Japan’s Nikkei 225 prints 0.80% intraday upside near 28,160 by the press time.

Moving on, a lack of major data/events could allow the USD/JPY buyers to take a breather ahead of Wednesday’s important catalysts. However, the monetary policy divergence between the US Federal Reserve (Fed) and the Bank of Japan (BOJ) joins the coronavirus woes to favor the bullish bias.

Technical analysis

Unless staying beyond the 100-DMA level surrounding 141.00, the USD/JPY bulls remain hopeful.

Additional important levels

Overview
Today last price 141.76
Today Daily Change -0.31
Today Daily Change % -0.22%
Today daily open 142.07
 
Trends
Daily SMA20 144.36
Daily SMA50 145.08
Daily SMA100 141.03
Daily SMA200 133.47
 
Levels
Previous Daily High 142.25
Previous Daily Low 140.16
Previous Weekly High 140.8
Previous Weekly Low 137.67
Previous Monthly High 151.94
Previous Monthly Low 143.53
Daily Fibonacci 38.2% 141.45
Daily Fibonacci 61.8% 140.96
Daily Pivot Point S1 140.74
Daily Pivot Point S2 139.41
Daily Pivot Point S3 138.65
Daily Pivot Point R1 142.83
Daily Pivot Point R2 143.59
Daily Pivot Point R3 144.92

 

 

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