USD/JPY bulls now looking to build on momentum beyond 109.00 handle
• Improvement risk-sentiment continues to dent JPY’s safe-haven status.
• Modest USD rebound/rising bond yields supportive of the positive move.
• Wednesday’s FOMC meeting minutes eyed for a fresh directional impetus.
The USD/JPY pair quickly reversed an early dip to mid-108.00s, with bulls now looking to build on the momentum further beyond the 109.00 handle.
The pair built on last week's strong recovery move from flash crash lows to sub-105.00 level, with a combination of supporting factors fueling the positive momentum for the third consecutive session on Tuesday.
Investors looked past Monday's disappointing release of US ISM non-manufacturing PMI and a goodish pickup in the US Treasury bond yields assisted the US Dollar to rebound from its weakest level since mid-October.
Adding to this, a continuous improvement in risk-sentiment led by optimism over a possible US-China trade deal and as depicted by positive mood across global equities, further dented the Japanese Yen's safe-haven status.
It, however, remains to be seen if bulls are able to maintain their dominant position or the ongoing positive momentum is seen as a selling opportunity amid expectations that the Fed might pause its rate hike cycle in 2019.
Hence, the key focus will be on the latest FOMC meeting minutes on Wednesday, which followed by the Fed Chair Jerome Powell's scheduled speech a day after will provide a meaningful directional impetus.
In the meantime, broader market risk-sentiment and the USD price dynamics might continue to act as key determinants of the pair's momentum in absence of any major market moving economic releases on Tuesday.
Technical levels to watch
Today Last Price: 108.97
Today Daily change: 26 pips
Today Daily change %: 0.239%
Today Daily Open: 108.71
Previous Daily SMA20: 111.01
Previous Daily SMA50: 112.36
Previous Daily SMA100: 112.27
Previous Daily SMA200: 111.11
Previous Daily High: 108.75
Previous Daily Low: 108.02
Previous Weekly High: 110.48
Previous Weekly Low: 104.75
Previous Monthly High: 113.83
Previous Monthly Low: 109.55
Previous Daily Fibonacci 38.2%: 108.47
Previous Daily Fibonacci 61.8%: 108.3
Previous Daily Pivot Point S1: 108.24
Previous Daily Pivot Point S2: 107.76
Previous Daily Pivot Point S3: 107.51
Previous Daily Pivot Point R1: 108.97
Previous Daily Pivot Point R2: 109.22
Previous Daily Pivot Point R3: 109.7