USD/JPY drops towards 107.00 as positive S&P 500 index downs USD
|- USD/JPY extends losses in tandem with US dollar.
- Gains in S&P 500 index lift the market mood.
- Traders ignore mixed US coronavirus data.
USD/JPY is extending its break below the 107.50 level, undermined by the relentless selling in the US dollar across its main competitors.
The upbeat market mood, as reflective of the gains in the S&P 500 index, dulls the safe-haven allure of the greenback, downing the US dollar index to 96.47.
The US stocks whipsawed on the mixed coronavirus statistics released from across the American hotspots. Although the conciliatory remarks from US Vice President Mike Pence pushed the equities back into the green zone and collaborated with the fresh leg lower in the buck.
In the session ahead, the main focus will remain on the US dollar and stocks price-action for trading impetus on the major.
USD/JPY technical levels
“Weekly lows, around the 107.25 region, now seems to act as immediate support and is closely followed by the 107.00 mark. Failure to defend the mentioned support levels might turn the pair vulnerable to resume its bearish trajectory and slide back towards the 106.00 round-figure mark,” explains FXStreet’s Analyst Haresh Menghani notes.
USD/JPY additional levels
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