USD/JPY Stages Powerful Rebound Amid Uncertainties

On an Intraday 30-minute Chart, USD/JPY continues a Powerful Rebound from a low of 106.35 seen yesterday (June 24)...


Overnight (June 24), U.S. stocks lost over 2% as investors' confidence in the economic recovery was shaken by resurging coronavirus cases. The U.S. recorded a one-day total of more than 36,000 new cases, the highest level since late April. California, Florida and Oklahoma reported record highs in new cases.

Meanwhile, the International Monetary Fund lowered its 2020 global GDP growth forecast to -4.9% from -3.0% previously, warning against a deeper global recession caused by the coronavirus pandemic.

Amid worries of an unsustainable rebound in demand for oil, oil prices plunged nearly 6% overnight.

Also, the U.S. government has been reported to be considering new tariffs on some European countries, which could heighten trade tensions between the two regions.

However, the U.S. dollar strengthened against other major currencies showing the currency's top safe-haven attraction amid all these uncertainties. Overnight, EUR/USD retreated 0.5%, GBP/USD slid 0.9%, while USD/JPY bounced 0.5%.

On an Intraday 30-minute Chart, USD/JPY continues a Rebound from a low of 106.35 seen yesterday (June 24).  

Source: GAIN Capital, TradingView

Currently it keeps trading at Levels Above the Ascending 20-period Moving Average.

And the Relative Strength Index remains at elevated levels in the 70s, suggesting continued upward momentum for the pair.

As long as USD/JPY continues to rebound, it is expected encounter Resistance at 107.45 (around the high of June 17) and 107.65 (around the high of June 16)  on the upside.

Bullish investors should raise the Key Support (Stop-loss) Level to 106.85 (around the 50-period moving average).

Build your confidence risk free

More from Forex

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.