USD/JPY: defying gravity around 110.00
|USD/JPY Current price: 110.04
- The dismal market mood keeps boosting the Japanese currency.
- The Japanese Markit Services PMI resulted in 51.8 in April, down from 52.0 in March.
The Japanese yen remains strong as uncertainties related to the US-China trade relationship and Brexit keep sending investors in search of safety. The USD/JPY pair lost the 110.00 level overnight, with a subsequent attempt to recover ground meeting sellers around 110.20. The Japanese Markit Services PMI resulted in 51.8 in April, deteriorating from the previous 52.0, adding to the sour sentiment that dominated the Asian session.
US Treasury yields continued easing, with the benchmark yield on the 10-year note currently at 2.43%, below Tuesday's low. Equities were sharply down in Asia, following the lead of Wall Street, with European indexes also in the red, although with losses limited. The US won't release relevant data today.
As for the technical perspective, the low so far has been 109.89, with the pair battling at the time being with the 110.00 figure. In the 4 hours chart, technical indicators remain within negative levels and have resumed their declines following a modest upward corrective movement, while the 20 SMA maintains its downward slope far above the current level. The 100 SMA turned lower above the 200 SMA, further indicating the strength of sellers. A break below 109.90 should open doors for further declines, with a possible target for the upcoming sessions coming at 108.60.
Support levels: 109.90 109.60 109.25
Resistance levels: 110.20 110.50 110.85
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