USD/JPY treads water near 109.50 amid negative Treasury yields

Weaker T-yields, uncertainty over US-Japan trade deal offset firmer DXY and US equity futures.
Range-play to extend ahead of the US macro releases amid trade-related headlines?

Dhwani Mehta FXStreet

The USD/JPY pair continues to face some selling pressure at the higher levels near 109.60 region, keeping the bias leaning towards the downside amid uncertainty over the US-Japan trade deal weighs on the investors’ sentiment.

The recent comments by the Japanese government officials, Motegi and Aso, on a potential US-Japan trade deal were contradictory that helped underpin the safe-haven appeal of the Japanese Yen. Japanese Economy Minister Motegi said that Japan is not in full agreement yet with the US on trade while the FinMin Aso noted Japan and the US have a deeper understanding on trade.

Moreover, the downside remains compelling amid the sell-off seen in the Treasury yields across the curve amid increased speculation of a Fed rate cut this year following the recent series of downbeat US fundamentals. However, the risk-on action seen in the US equity futures and a broadly stronger US dollar continue to keep a check on the move lower.

The focus now remains on the upcoming US macro news, including the key CB consumer confidence release at 1400 GMT, for fresh dollar trades and the next direction on the USD/JPY pair. Meanwhile, the spot will remain at the mercy of the broader market sentiment amid Brexit woes and trade concerns.

USD/JPY Technical Levels

USD/JPY

Overview
Today last price	109.52
Today Daily Change	0.02
Today Daily Change %	0.02
Today daily open	109.5

Trends
Daily SMA20	110.2
Daily SMA50	110.9
Daily SMA100	110.56
Daily SMA200	111.41

Levels
Previous Daily High	109.59
Previous Daily Low	109.28
Previous Weekly High	110.68
Previous Weekly Low	109.27
Previous Monthly High	112.4
Previous Monthly Low	110.8
Daily Fibonacci 38.2%	109.47
Daily Fibonacci 61.8%	109.4
Daily Pivot Point S1	109.33
Daily Pivot Point S2	109.16
Daily Pivot Point S3	109.03
Daily Pivot Point R1	109.63
Daily Pivot Point R2	109.76
Daily Pivot Point R3	109.94

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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