USD/JPY steadies below 109 as markets turn quiet ahead of key macro events

US Dollar Index turns south following last week's upsurge.
Heightened geopolitical tensions in Hong Kong weigh on the sentiment.
US bond markets will be closed on Monday.

Eren Sengezer FXStreet

The USD/JPY pair registered its highest weekly-close since mid-May at 109.28 last Friday but failed to preserve its bullish momentum on Monday. As of writing, the pair was trading at 108.95, losing 0.3% on a daily basis.

Violent demonstrations that saw police and protestors clash in Hong Kong over the weekend seem to be weighing on the market sentiment as it could be assessed as a factor that might play a role in the United States (US)-China trade negotiations.

Markets are likely to stay calm ahead of key events

Reflecting the souring market mood, major European equity indexes are posting losses on Monday and the safe-haven JPY is gathering strength against its peers. The bond markets in the US will be closed on Monday due to Veterans Day and the pair is likely to remain quiet in the second half of the day.

Tuesday's macroeconomic calendar won't be featuring any significant macroeconomic data releases. Wednesday's inflation report from the US and Federal Open Market Committee (FOMC) Chairman Jerome Powell's two-day testimony that will also start on Wednesday will be looked upon for fresh catalysts.

Technical levels to watch for

USD/JPY

Overview
Today last price	108.94
Today Daily Change	-0.28
Today Daily Change %	-0.26
Today daily open	109.22

Trends
Daily SMA20	108.71
Daily SMA50	107.98
Daily SMA100	107.64
Daily SMA200	109.03

Levels
Previous Daily High	109.48
Previous Daily Low	109.08
Previous Weekly High	109.49
Previous Weekly Low	108.1
Previous Monthly High	109.29
Previous Monthly Low	106.48
Daily Fibonacci 38.2%	109.23
Daily Fibonacci 61.8%	109.32
Daily Pivot Point S1	109.04
Daily Pivot Point S2	108.86
Daily Pivot Point S3	108.63
Daily Pivot Point R1	109.44
Daily Pivot Point R2	109.66
Daily Pivot Point R3	109.84

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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