A combination of factors assisted USD/JPY to stage a modest bounce from multi-week lows. The risk-on mood undermined the safe-haven JPY and remained supportive of the move up. An uptick in the US bond yields provided an additional lift; weaker USD capped the upside. The USD/JPY pair refreshed daily tops, around the 108.45 region during the early European session and recovered a part of the previous day’s losses. Having shown some resilience below the 108.00 mark, the pair staged a modest recovery from seven-week lows and was supported by a combination of factors. The underlying bullish sentiment in the financial markets undermined demand for the safe-haven Japanese yen. Bulls further took cues from an uptick in the US Treasury bond yields, albeit the prevalent US dollar selling bias might cap gains for the USD/JPY pair. The USD remained depressed near the lowest level since early March amid speculations that the Fed will keep interest rates low for a longer period. Investors now seem convinced with the Fed’s view that any spike in inflation is likely to be transitory and have been scaling back expectations for an earlier lift-off. This, along with fears about another dangerous wave of coronavirus infections, might hold bulls from placing aggressive bets. In the absence of any major market-moving economic releases from the US, it will be prudent to wait for some strong follow-through buying before confirming that the USD/JPY pair has bottomed out. That said, the bias remains tilted in favour of bearish traders and supports prospects for an extension of the recent pullback from one-year tops. Hence, any subsequent positive move might still be seen as a selling opportunity and remain capped near the 109.00 mark. The mentioned handle represents a confluence support breakpoint, comprising of the 200-hour SMA on the 4-hour chart and the 23.6% Fibonacci level of the 102.59-110.97 strong move up, which should now act as a key pivotal point. Technical levels to watch FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD: Sterling to underperform other G10 currencies in the coming months – HSBC FX Street 2 years A combination of factors assisted USD/JPY to stage a modest bounce from multi-week lows. The risk-on mood undermined the safe-haven JPY and remained supportive of the move up. An uptick in the US bond yields provided an additional lift; weaker USD capped the upside. The USD/JPY pair refreshed daily tops, around the 108.45 region during the early European session and recovered a part of the previous day's losses. Having shown some resilience below the 108.00 mark, the pair staged a modest recovery from seven-week lows and was supported by a combination of factors. The underlying bullish sentiment in the financial… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
