USD/JPY under pressure around 105.50 despite the US dollar rebound

US dollar rebound fails to save the day for USD/JPY bulls.
Sellers continue to lurk above 105.50 despite upbeat mood.
Holiday-thinned trading could exaggerate the moves.

Dhwani Mehta FXStreet

The minor recovery in the USD/JPY pair met fresh supply just above the 105.60 region, knocking-off the rates back to the midpoint of the 105 level.

The major fails to take advantage of the broad-based US dollar rebound, underpinned by the surge in the USD/CNH cross amid a central bank intervention. Meanwhile, concerns about the coronavirus resurgence across Europe appear to lend some support to the safe-haven US dollar.

The mixed Japanese macro news combined with a rise in the S&P 500 futures could likely cushion the pullback in the spot from daily highs.

Further, the positive sentiment around the US Treasury yields combined with holiday-thinned light trading could likely keep the buyers hopeful while putting them at risk of some exaggeration in the price action.

USD/JPY: Technical levels

“An ascending trend line from September 21, at 105.55 now, challenges the USD/JPY bears targeting the monthly low near 104.95. On the contrary, a downward sloping resistance line from July 01, at 106.05 now, becomes a tough nut to crack for the buyers,” FXStreet’s Analyst Anil Panchal notes.

USD/JPY: Additional levels

USD/JPY

Overview
Today last price	105.51
Today Daily Change	-0.11
Today Daily Change %	-0.10
Today daily open	105.63

Trends
Daily SMA20	105.4
Daily SMA50	105.8
Daily SMA100	106.51
Daily SMA200	107.47

Levels
Previous Daily High	106.04
Previous Daily Low	105.58
Previous Weekly High	106.11
Previous Weekly Low	105.28
Previous Monthly High	106.55
Previous Monthly Low	104
Daily Fibonacci 38.2%	105.76
Daily Fibonacci 61.8%	105.87
Daily Pivot Point S1	105.46
Daily Pivot Point S2	105.29
Daily Pivot Point S3	105
Daily Pivot Point R1	105.92
Daily Pivot Point R2	106.21
Daily Pivot Point R3	106.38

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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