USD/JPY: Major bull cross fails to inspire Yen bears

• USD/JPY remains below 100.00 despite bull cross on technical charts. 
• The S&P 500 futures are hinting at risk reset in the markets. 
• A notable equity market recovery could weigh over yen. 

USD/JPY is hovering below 110.00 with yen showing resilience, despite the bullish development on technical charts. 

Bull cross

The 100-day moving average has crossed above the 200-day MA, confirming a bullish crossover, the first since August 2018. 

So far, however, that has failed to inspire yen sellers. The USD/JPY pair is currently sidelined around 109.90, having faced rejection at 109.97 a few minutes ago. 

The long-term bull cross is a lagging indicator and often ends up trapping the bulls on the wrong side of the market. 

Eyes broader market sentiment

The futures on the S&P 500 are currently reporting a 0.20% gain, signaling a potential risk reset in the markets. 

If the equities continue to rise, the USD/JPY pair could retake the 110.00 handle. 

The spot fell from 110.22 to 109.76 on Tuesday as global equity markets fell on coronavirus scare 

The US stocks tracked its Asian and European equities lower on Tuesday with the S&P 500 losing 8 points or 0.27%, courtesy of coronavirus scare, sending the anti-risk yen higher. 

Technical levels