USD/JPY struggles near weekly lows, just above mid-107.00s

Reviving safe-haven demand benefits the JPY and keeps exerting downward pressure.
Sliding US bond yields undermine the USD and further collaborates to the selling bias.
Traders now eye US ADP report and ISM non-manufacturing PMI for some impetus.

Haresh Menghani FXStreet

The USD/JPY pair weakened farther below the 108.00 handle and dropped to fresh weekly lows, around mid-107.00s during the Asian session on Wednesday.

Having failed to capitalize on the weekly bullish gap, the pair remained under some selling pressure for the second consecutive session and has now retreated around 100-pips from over one-week tops set on the first trading day of the week amid a fresh wave of global risk-aversion trade.

The latest optimism over the US-China trade truce faded rather quickly, with resurfacing trade war fears - especially after the US threatened to impose additional tariffs on $4 billion worth of European goods, benefitting the Japanese Yen's safe-haven status against its American counterpart.

Bearish traders further took cues from a fresh leg of a downfall in the US Treasury bond yields. In fact, the yield on the benchmark US Treasury bond yields brushed a fresh 2-1/2-year low, which kept the US Dollar bulls on the defensive and further collaborated to the pair's bearish slide.

Currently placed at the lower end of its weekly trading range, market participants now look forward to the US economic docket - featuring the releases of ADP report on private-sector employment and ISM non-manufacturing PMI, for some meaningful trading impetus.

The key, focus, however, will remain on Friday's official US monthly jobs report - popularly known as NFP, which will play a key role in influencing the USD price dynamics in the near-term and provide a fresh directional impetus for the major.

Technical levels to watch

USD/JPY

Overview
Today last price	107.61
Today Daily Change	-0.28
Today Daily Change %	-0.26
Today daily open	107.89

Trends
Daily SMA20	108.07
Daily SMA50	109.31
Daily SMA100	110.27
Daily SMA200	110.98

Levels
Previous Daily High	108.48
Previous Daily Low	107.76
Previous Weekly High	108.16
Previous Weekly Low	106.78
Previous Monthly High	108.8
Previous Monthly Low	106.78
Daily Fibonacci 38.2%	108.04
Daily Fibonacci 61.8%	108.2
Daily Pivot Point S1	107.61
Daily Pivot Point S2	107.33
Daily Pivot Point S3	106.9
Daily Pivot Point R1	108.32
Daily Pivot Point R2	108.75
Daily Pivot Point R3	109.03

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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