USD/JPY trims a part of early recovery gains, trades below mid-110.00s

USD/JPY gains some traction on Wednesday and built on the overnight modest rebound.
A modest recovery in the risk sentiment, rebounding US bond yields remained supportive.
The upside remains capped amid concerns over the economic impact from the coronavirus.

Haresh Menghani FXStreet

The USD/JPY pair trimmed a part of its early gains and has now retreated around 20 pips from the Asian session swing highs – levels just above mid-110.00s.

The pair built on the previous session's late rebound from sub-110.00 levels and gained some positive traction on Wednesday amid signs of stability in the global financial markets, which tends to undermine the Japanese yen's safe-haven demand.

Bulls refrain from placing aggressive bets

A modest recovery in the global risk sentiment allowed the US Treasury bond yields to stage a goodish bounce from all-time lows. This eventually extended some support to the US dollar and remained supportive of the early uptick.

However, growing market over the global outbreak of the deadly coronavirus and its impact on the world economy held investors from placing aggressive bullish bets, which seemed to be one of the key factors capping the upside.

Hence, it will be prudent to wait for some strong follow-through buying before confirming that the recent sharp corrective slide from multi-month tops has already ended and positioning for any further near-term appreciating move.

There isn't any major market-moving economic data due for release on Wednesday. Hence, any fresh developments around the coronavirus saga will continue to play a key role in producing some meaningful trading opportunities.

Technical levels to watch

USD/JPY

Overview
Today last price	111.59
Today Daily Change	1.47
Today Daily Change %	1.33
Today daily open	110.12

Trends
Daily SMA20	109.94
Daily SMA50	109.58
Daily SMA100	109.18
Daily SMA200	108.41

Levels
Previous Daily High	111.04
Previous Daily Low	109.89
Previous Weekly High	112.23
Previous Weekly Low	109.66
Previous Monthly High	110.29
Previous Monthly Low	107.65
Daily Fibonacci 38.2%	110.33
Daily Fibonacci 61.8%	110.6
Daily Pivot Point S1	109.66
Daily Pivot Point S2	109.2
Daily Pivot Point S3	108.51
Daily Pivot Point R1	110.81
Daily Pivot Point R2	111.5
Daily Pivot Point R3	111.96

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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