USDJPY Stages Powerful Rebound Amid Uncertainties

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By :  ,  Financial Analyst

USD/JPY Stages Powerful Rebound Amid Uncertainties

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).

Related tags: Forex JPY USD

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