USD/JPY sticks to modest recovery gains but lacks follow-through
• Trump’s optimistic trade-related comments weigh on JPY’s safe-haven status.
• The partial US government shutdown kept the USD bulls on the defensive.
• Global growth concerns further collaborate towards capping any strong up-move.
The USD/JPY pair held on to its mildly positive tone, albeit struggled to build on the recovery move further beyond mid-110.00s.
The pair caught some bids at the start of a new trading week and recovered a part of Friday's fall back closer to over 4-month lows. The US President Donald Trump's optimistic comments on Sunday increased the likelihood of a possible trade deal with China and eventually dented the Japanese Yen's safe-haven status.
This coupled with a modest US Dollar uptick, boosted by Friday's better-than-expected Chicago PMI and mostly in line pending home sales, remained supportive of the attempted rebound, though a combination of factors kept a lid on any strong follow-through.
Market sentiment remained fragile over looming concerns of slowing global growth, while a partial US government shutdown held investors from placing any aggressive USD bullish bets amid relatively thin liquidity conditions and absent relevant market moving economic releases on New Year's Eve.
Technical levels to watch
Today Last Price: 110.39
Today Daily change: 18 pips
Today Daily change %: 0.163%
Today Daily Open: 110.21
Previous Daily SMA20: 112.27
Previous Daily SMA50: 112.78
Previous Daily SMA100: 112.38
Previous Daily SMA200: 111.01
Previous Daily High: 111.07
Previous Daily Low: 110.16
Previous Weekly High: 111.41
Previous Weekly Low: 110
Previous Monthly High: 114.25
Previous Monthly Low: 112.3
Previous Daily Fibonacci 38.2%: 110.5
Previous Daily Fibonacci 61.8%: 110.72
Previous Daily Pivot Point S1: 109.89
Previous Daily Pivot Point S2: 109.56
Previous Daily Pivot Point S3: 108.97
Previous Daily Pivot Point R1: 110.8
Previous Daily Pivot Point R2: 111.39
Previous Daily Pivot Point R3: 111.72