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USD/JPY Forecast: Bounces After A First Attempt To Break Below The 110.00 Threshold

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USD/JPY Forecast: Bounces After A First Attempt To Break Below The 110.00 Threshold

USD/JPY Current Price: 110.29

  • US government bond yields reached fresh record lows before bouncing modestly.
  • Panic eased but the market’s mood still sour amid coronavirus concerns.
  • USD/JPY bounces after a first attempt to break below the 110.00 threshold.

The USD/JPY pair recovered some ground this Wednesday, settling at around 110.40 after piercing the 110.00 figure on Tuesday. A modest bounce in US government bond yields and the positive tone of US equities, helped the pair to close the day in the green. Nevertheless, the yield on the benchmark 10-year note fell to a record low of 1.31%, to settle at 1.33%, as investors remain cautious amid uncertainty about the effects of the coronavirus on economic growth.

Japan didn’t publish macroeconomic data this Wednesday, and there is nothing scheduled for early Thursday, but a couple of BOJ speakers.

USD/JPY Short-Term Technical Outlook

The USD/JPY pair has been unable to surpass the 61.8% retracement of its latest daily advance at around 110.65, the immediate resistance. The 4-hour chart shows that the 20 SMA has extended its decline above the current level, now below the 50% retracement of the same advance. Technical indicators have bounced from oversold levels but lost directional strength well into negative territory. The 100 SMA provides short-term support around 110.20. Chances of lower lows will increase on a break below this last.

Support levels: 110.20 109.80 109.45

Resistance levels: 110.65 111.00 111.40

Image by Brian Merrill from Pixabay

 

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Posted-In: FXStreet USD/JPYEarnings News Forex Global Markets

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