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USD/JPY trades with modest losses, flirts with session lows around mid-107.00s

USD/JPY trades with modest losses, flirts with session lows around mid-107.00s

  • USD/JPY continued with its struggle to make it through 50-DMA amid sustained USD selling.
  • The upbeat market mood undermined the safe-haven JPY and helped limit any deeper losses.
  • Market participants now look forward to the US ISM Manufacturing PMI for a fresh impetus.

The USD/JPY pair edged lower on the first day of a new trading week and was last seen trading near session lows, around mid-107.00s.

The pair failed to capitalize on Friday's goodish intraday recovery move of around 80 pips from two-week lows and continued with its struggle to make it through 50-day SMA. The USD/JPY pair once again started retreating from the vicinity of the 108.00 round-figure mark amid the continuous offered tone surrounding the US dollar, albeit the upbeat market mood helped limit any meaningful downfall.

The greenback remained depressed amid hopes of a sharp V-shaped recovery for the global economy and the recent optimism over a potential COVID-19 vaccine. This coupled with widespread riots in the US, following George Floyd's death at the hands of Minneapolis police, further pressured the buck and contributed to the USD/JPY pair's mildly weaker tone through the Asian session on Monday.


Meanwhile, the US President Donald Trump began the process of ending Hong Kong's special status but did not withdraw from the US-China phase-one trade deal. Adding to this, signs of recovery in the Chinese economy from the coronavirus pandemic remained supportive of the upbeat market mood. This, in turn, undermined the safe-haven Japanese yen and extended some support to the USD/JPY pair.

Looking at the broader picture, the pair has been oscillating in a narrow trading band between the 107.00-108.00 levels over the past two weeks or so. This makes it prudent to wait for a sustained break in either direction before traders start positioning for the pair's near-term trajectory.

Moving ahead, market participants now look forward to the US economic docket, highlighting the release of the ISM Manufacturing PMI. The data might influence the USD price dynamics and produce some short-term trading opportunities later during the early North American session.

Technical levels to watch


Today last price 107.57
Today Daily Change -0.26
Today Daily Change % -0.24
Today daily open 107.83
Daily SMA20 107.24
Daily SMA50 107.8
Daily SMA100 108.37
Daily SMA200 108.35
Previous Daily High 107.9
Previous Daily Low 107.08
Previous Weekly High 107.95
Previous Weekly Low 107.08
Previous Monthly High 108.09
Previous Monthly Low 105.99
Daily Fibonacci 38.2% 107.58
Daily Fibonacci 61.8% 107.39
Daily Pivot Point S1 107.31
Daily Pivot Point S2 106.79
Daily Pivot Point S3 106.5
Daily Pivot Point R1 108.12
Daily Pivot Point R2 108.42
Daily Pivot Point R3 108.94

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