USD/JPY: Yen snaps back territory from 104.80 to 104.11 sesison lows

Currently, USD/JPY is trading at 104.19, up 0.01% on the day, having posted a daily high at 104.89 and low at 104.11.

USD/JPY dropped back from session highs after disappointing US consumer confidences that sent US yields sharply lower in volatility with the VIX in recovery and investors seeking out safe havens yet again with the price of gold rallying, despite DXY entering new highs through the 99 handle. However, by the close, US 10yr treasury yields were little changed, after fluctuating between 1.74% and 1.79%.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, technical indicators have turned sharply lower within positive territory, holding so far above their mid-lines, whilst the 100 SMA continues heading sharply higher below the current level, suggesting declines will likely be short-lived.

Meanwhile, with spot trading at 104.20, we can see next resistance ahead at 104.20 (Monthly High), 104.33 (Yesterday's High), 104.40 (Hourly 20 EMA), 104.40 (Weekly Classic R1) and 104.44 (Daily Classic R1). Support below can be found at 104.18 (Weekly High), 104.17 (Daily Open), 104.11 (Daily Low), 104.08 (Daily Classic PP) and 103.96 (Hourly 100 SMA).