USD/JPY: Rebound stalls near 104.50 amid Thanksgiving light trading
|- USD/JPY’s bounce loses still in Asia on Thanksgiving Day.
- DXY wallows in two-month lows on mixed US data, covid surge.
- Cautious optimism to keep the pair in a familiar range around 104.50.
USD/JPY stalls its overnight bounce just shy of the 104.50 level in early Asia, as the bulls lack follow-through amid holiday-thinned market conditions. US markets are closed Thursday in observance of Thanksgiving Day.
Despite the S&P 500 futures posting minor gains, the sentiment around the major remains undermined by the persistent downbeat tone in the US dollar against its main competitors.
The rise in the US initial jobless claims by 778,000 in the week ending Nov. 21 overshadowed the 33.1% expansion seen in the US Q3 GDP (second estimate) and dragged the greenback sharply lower in Wednesday’s American session.
Also, the risk-on rally in the US stocks took a breather after the country reported over 12.7 million COVID-19 cases in total and reinforced economic growth concerns in the world’s biggest economy. Meanwhile, the FOMC meeting’s minutes reiterated the dovish expectations, adding to the downside in the buck.
So far this Thursday’s trading, the spot is back in the red zone amid a softer Tokyo open and lack of relevant macro news. Looking ahead, thin trading and cautious optimism amid vaccine hopes could likely keep USD/JPY in a 104.00-105.00 familiar range.
USD/JPY technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.