USD/JPY: Upside opening up towards 109.70 as risk-on extends

Risk-on amid US-Iran calm and trade optimism powers USD/JPY.
The bulls now aim the key resistance near 109.70 region.
BOJ survey on Japan’s households hurts the yen further.

Dhwani Mehta FXStreet

USD/JPY extends its solid comeback from three-month lows into a second straight day on Thursday, as the bulls continue to ride higher on a risk-on wave fuelled by easing US-Iran geopolitical tensions after US President Trump called for de-escalation on Wednesday.

Trump said that Iran appeared to be standing down on its military retaliation while the US will only impose additional economic sanctions on Iran against Iran’s attacks on the US airbases in Iraq a day before.

The US President’s comments triggered a calm across the markets, as demand for the risk assets returned alongside. Therefore, the safe-haven yen lost significant ground and now flirts with eight-day lows of 109.32 reached against its American rival some minutes ago.

Further, the spot received an additional boost from the Chinese Commerce Ministry statement that confirmed Vice Premier Liu’s visit Washington for the US-China Phase one trade deal signing in ceremony.

While, the yen also felt the heat of worsening Japanese households’ confidence on the economy, as revealed by the Bank of Japan (BOJ) quarterly households’ survey. Japan households' mood hits 5-year low - BOJ survey

Markets now look forward to the US economic data, fresh geopolitical or trade headlines and Fedspeak for the next leg up higher in the spot. The major looks north, as it trades above all major daily Simple Moving Averages (SMA).

USD/JPY Technical levels to consider

USD/JPY

Overview
Today last price	109.30
Today Daily Change	0.23
Today Daily Change %	0.21
Today daily open	109.04

Trends
Daily SMA20	109.11
Daily SMA50	108.94
Daily SMA100	108.27
Daily SMA200	108.62

Levels
Previous Daily High	109.25
Previous Daily Low	107.65
Previous Weekly High	109.49
Previous Weekly Low	107.84
Previous Monthly High	109.8
Previous Monthly Low	108.43
Daily Fibonacci 38.2%	108.64
Daily Fibonacci 61.8%	108.26
Daily Pivot Point S1	108.04
Daily Pivot Point S2	107.05
Daily Pivot Point S3	106.44
Daily Pivot Point R1	109.64
Daily Pivot Point R2	110.24
Daily Pivot Point R3	111.24

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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