“¢ A modest USD rebound helped find some support ahead of 108.00 handle.
“¢ Bullish traders shrug off a follow-through downfall in the US bond yields.
The USD/JPY pair quickly reversed a dip to 4-1/2 month low and is currently placed at the top end of its daily trading range, around the 108.35-40 region.
The US President Donald Trump’s surprise move on Thursday to impose tariffs on Mexican goods fueled fears of a global economic slowdown and continued benefitting the Japanese Yen’s safe-haven demand.
The pair added to last week’s steep decline and dropped to its lowest level since mid-Jan. during the Asian session on Monday, albeit a modest US Dollar rebound helped ease the bearish pressure, at least for the time being.
The pair managed to find some support ahead of the 108.00 handle, with bulls shrugging off the prevailing risk-off environment and a follow-through weakness in the US Treasury bond yields.
It, however, remains to be seen if the recovery is backed by any genuine buying or is solely led by some short-covering move amid near-term oversold conditions, especially after Friday’s intraday slump of 130-pips.
Moving ahead, Monday’s US economic docket – highlighting the release of ISM manufacturing PMI, will now be looked upon for some fresh trading impetus later during the early North-American session.
Technical levels to watch
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