USD/JPY flirts with session lows, just below 106.00 mark

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The USD/JPY pair remained depressed through the early North American session and was last seen hovering near the lower end of its daily trading range, just below the 106.00 mark.

The pair came under some renewed selling pressure on the first day of a new trading week and was pressured by the heavily offered tone surrounding the US dollar. Fading prospects for the next round of the US fiscal stimulus measures continued undermining the greenback, which, in turn, was seen as a key factor exerting pressure on the USD/JPY pair.

Adding to this, a growing diplomatic spat between the world's two largest economies benefitted the safe-haven Japanese yen and further contributed to the USD/JPY pair's downfall. In the latest developments, China announced that Beijing has sent a note detailing reciprocal restrictions on the US Embassy and consulates on Friday.

Meanwhile, a strong rally in the global equity markets – amid renewed optimism over a potential vaccine for the highly contagious coronavirus disease – might help limit deeper losses. Investors might also refrain from placing aggressive bets ahead of this week's central bank events – the FOMC on Wednesday and BoJ decision on Thursday.

Even from a technical perspective, the USD/JPY pair has been oscillating between two converging trend-lines, which constitute the formation of a symmetrical triangle. The set-up further warrants some caution and make it prudent to wait for a sustained move in either direction before positioning for the pair's near-term trajectory.

Technical levels to watch

USD/JPY

Overview
Today last price105.98
Today Daily Change-0.18
Today Daily Change %-0.17
Today daily open106.16

 

Trends
Daily SMA20106.03
Daily SMA50106.29
Daily SMA100106.84
Daily SMA200107.84

 

Levels
Previous Daily High106.27
Previous Daily Low106.06
Previous Weekly High106.38
Previous Weekly Low105.79
Previous Monthly High107.05
Previous Monthly Low105.1
Daily Fibonacci 38.2%106.19
Daily Fibonacci 61.8%106.14
Daily Pivot Point S1106.06
Daily Pivot Point S2105.95
Daily Pivot Point S3105.85
Daily Pivot Point R1106.27
Daily Pivot Point R2106.37
Daily Pivot Point R3106.48