USD/JPY finds support at daily pivot amid fresh USD selling

Having faced rejection just shy of 107 handle, the USD/JPY pair fell sharply in mid-Asia, before finding some bids at daily pivot.

USD/JPY losing sight of 107 handle?

The USD/JPY pair came under selling pressure over the last hour, after a renewed risk-off wave gripped markets and weighed on the sentiment around the Japanese stocks. While fresh USD selling also collaborated to the latest leg lower in spot.

However, the bulls were quickly rescued by rising US treasury yields across the curve, restricting the sudden drop to daily pivot at 106.25.

The major is last seen exchanging hands at 106.46, still down -0.36%, while the Nikkei 225 pares gains to now trade +0.57% higher at 17,445 versus a +1% rise seen earlier on the day.

Meanwhile, markets ignored second-tier Japanese economic data, as focus solely remains on the USD dynamics, in wake of Wednesday’s Trump victory at the US presidential elections.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 106.72 (Jul 24 high). A break above the last, the major could test 106.95 (multi-month high) and 107.48 (Jul highs) beyond the last. While to the downside, the immediate support is seen at 106.25 (daily pivot & low) next at 106.00 (round figure) and below that at 105.26 (200-DMA).

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