Source: PaxForex Premium Analytics Portal, Technical Insight

USD/JPY got under pressure at the beginning of the North American session on the back of falling yields of the treasuries. The USA today published quite good data on production orders and ISM New York activity index. A separate report showed the growth of the economic optimism index IBD/TIPP rose to 46.8 from 44. However, the lack of progress in negotiations on a new coronavirus aid package is putting pressure on the market sentiment. At the moment, the yield of 10-year Trader's Markets is trading at 6.8%, while the yield of 5-year Trader's Markets has dropped by 9%.

USD/JPY, 30 min

Pivot: 105.56

Analysis:

Provided that the currency pair is traded below 105.85, follow the recommendations below:

• Time frame: 30 min
• Recommendation: short position
• Entry point: 105.56
• Take Profit 1: 105.45
• Take Profit 2: 105.25

Alternative scenario: 

In case of breakout of the level 105.85, follow the recommendations below:

• Time frame: 30 min
• Recommendation: long position
• Entry point: 105.85
• Take Profit 1: 106.20
• Take Profit 2: 106.45

Comment:

Technically RSI shows the possibility of a downtrend during the day. 

Key levels:

USD/JPY, D1

Pivot: 106.27

Analysis:

While the price is below 108.15, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 106.27
• Take Profit 1: 104.15
• Take Profit 2: 102.40

Alternative scenario:

If the level 108.15 is broken-out, follow the recommendations below.

• Time frame: D1
• Recommendation: long position
• Entry point: 108.15
• Take Profit 1: 109.65
• Take Profit 2: 111.20

Comment:

RSI shows a medium-term downtrend.

Key levels:

We also advise you to pay attention to the following currency pairs for intraday trading:

EUR/USD – buy above 1.1780 with 1.1835 and 1.1860 as Take Profit targets. Alternative scenario - if the level of 1.1780 is broken-down, you should consider selling with the targets 1.1750 and 1.1720 as Take Profit.
GBP/USD - long positions above 1.3050 with 1.3105 and 1.3140 targets as Take Profit. Alternative scenario - if the level of 1.3050 is broken-down, sell with the targets 1.3010 and 1.2980 as Take Profit.
USD/CAD - sell below 1.3330 with 1.3270 and 1.3240 targets as Take Profit. Alternative scenario - if the level 1.3330 is broken-out, buy with the TP 1.3360 and 1.3400.