USD/JPY turns neutral, around mid-105.00s amid upbeat market mood

USD/JPY seesawed between tepid gains/minor losses through the early North American session.
Some aggressive USD long-unwinding trade prompted some intraday selling around the major.
The prevalent risk-on mood undermined the safe-haven JPY and helped limit any deeper losses.

Haresh Menghani FXStreet

The USD/JPY pair had some good two-way price moves on Monday and now seems to have stabilized in the neutral territory, around mid-105.00s.

Following an early uptick over one-week tops set on Friday, around the 105.70 region, the pair witnessed a modest intraday pullback amid some aggressive US dollar long-unwinding trade. The USD bulls opted to lighten their bets amid concerns that the lack of additional fiscal stimulus measures could halt the current US economic recovery.

Adding to this, the political uncertainty in the run-up to the US Presidential election in November further took its toll on the greenback and exerted some pressure on the USD/JPY pair. However, a strong rally in the equity markets undermined demand for the safe-haven Japanese yen and helped limit any deeper losses, at least for now.

The USD/JPY pair once again attracted some dip-buying near the 105.25-20 region, though lacked any strong follow-through amid absent relevant market moving economic releases. This makes it prudent to wait for some strong follow-through buying before positioning for an extension of the recent recovery move from the 104.00 mark, or over six-month lows.

Moving ahead, market participants will now look forward to the first presidential debate on Tuesday. This, along with important US macro data, including the closely watched US monthly jobs report (NFP), will play a key role in influencing the near-term USD price dynamics and assist investors to determine the next leg of a directional move for the USD/JPY pair.

Technical levels to watch

USD/JPY

Overview
Today last price	105.52
Today Daily Change	-0.09
Today Daily Change %	-0.09
Today daily open	105.61

Trends
Daily SMA20	105.63
Daily SMA50	105.88
Daily SMA100	106.68
Daily SMA200	107.64

Levels
Previous Daily High	105.7
Previous Daily Low	105.24
Previous Weekly High	105.7
Previous Weekly Low	104
Previous Monthly High	107.05
Previous Monthly Low	105.1
Daily Fibonacci 38.2%	105.52
Daily Fibonacci 61.8%	105.42
Daily Pivot Point S1	105.33
Daily Pivot Point S2	105.06
Daily Pivot Point S3	104.87
Daily Pivot Point R1	105.79
Daily Pivot Point R2	105.98
Daily Pivot Point R3	106.25

Author

Haresh Menghani

FXStreet

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

EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.