USD/JPY: Major bull cross fails to inspire Yen bears
|- USD/JPY remains below 110.00 despite bull cross on technical charts.
- The S&P 500 futures are hinting at risk reset in the markets.
- A notable equity market recovery could weigh over yen.
USD/JPY is hovering below 110.00 with yen showing resilience, despite the bullish development on technical charts.
Bull cross
The 100-day moving average has crossed above the 200-day MA, confirming a bullish crossover, the first since August 2018.
So far, however, that has failed to inspire yen sellers. The USD/JPY pair is currently sidelined around 109.90, having faced rejection at 109.97 a few minutes ago.
The long-term bull cross is a lagging indicator and often ends up trapping the bulls on the wrong side of the market.
Eyes broader market sentiment
The futures on the S&P 500 are currently reporting a 0.20% gain, signaling a potential risk reset in the markets.
If the equities continue to rise, the USD/JPY pair could retake the 110.00 handle.
The spot fell from 110.22 to 109.76 on Tuesday as global equity markets fell on coronavirus scare
The US stocks tracked its Asian and European equities lower on Tuesday with the S&P 500 losing 8 points or 0.27%, courtesy of coronavirus scare, sending the anti-risk yen higher.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.