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USD/JPY weakens farther below 108.00 handle, fresh weekly lows

   •  The USD continues to be weighed down by dovish FOMC meeting minutes.
   •  Fading optimism over US-China trade talks boosts JPY’s safe-haven demand.

The USD/JPY pair extended its overnight rejection slide from the 109.00 region and is currently placed at the lower end of its weekly trading range, around the 108.90-85 area. 

The US Dollar continues to be weighed down by dovish FOMC meeting minutes, which revealed that policymakers are willing to hold off on rate hikes amid concerns about global growth and subdued inflation.

Omkar Godbole, FXStreet's own Analyst writes: “Notably, the dovish turn is driven by market turmoil and global growth concerns. Indeed, the central bank is data dependent and could again turn hawkish if the incoming data paints a positive picture of the US economy.”

Meanwhile, the latest optimism over US-China trade talks already quickly faded after the official statements from both sides made no mention of the next round of tariffs to be implemented by Marc and disappointed market players.

The risk-off mood was evident from a weaker tone across equity markets and sliding US Treasury bond yields, which boosted the Japanese Yen's safe-haven status and further collaborated to the pair's weaker tone.

Moving ahead, today's economic docket lacks any major market-moving economic releases and hence, the key focus will be on scheduled speeches by a slew of influential FOMC members, including the Fed Chair Jerome Powell.

Technical outlook

He further adds, “the immediate downside could be capped around 107.00. The overall bias would remain bearish as long as the spot is holding below the former support-turned-resistance of the 100-day MA.”

USD/JPY

Overview:
    Today Last Price: 107.88
    Today Daily change: -13 pips
    Today Daily change %: -0.120%
    Today Daily Open: 108.01
Trends:
    Previous Daily SMA20: 110.52
    Previous Daily SMA50: 112.18
    Previous Daily SMA100: 112.23
    Previous Daily SMA200: 111.13
Levels:
    Previous Daily High: 109
    Previous Daily Low: 107.97
    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%: 108.37
    Previous Daily Fibonacci 61.8%: 108.61
    Previous Daily Pivot Point S1: 107.65
    Previous Daily Pivot Point S2: 107.29
    Previous Daily Pivot Point S3: 106.62
    Previous Daily Pivot Point R1: 108.68
    Previous Daily Pivot Point R2: 109.36
    Previous Daily Pivot Point R3: 109.72

 

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