USD/JPY: The risk is on the downside, initial support seen at 103.50
|USD/JPY is trading near weekly lows without directional momentum amid the persistent dollar’s weakness. According to FXStreet’s Chief Analyst, the risk is skewed to the downside.
Key quotes
“The American currency suffers from coronavirus-related jitters, as more US states impose restrictive measures to curb the spread of the virus.”
“Japan published the October National inflation, which came in worse than anticipated at -0.4% YoY. The core CPI matched expectations printing -0.7% YoY. The country also released the November preliminary Jibun Bank Manufacturing PMI that contracted to 48.3 from 48.7.”
“The 4-hour chart shows that the pair continues trading below a firmly bearish 20 SMA, which extended its decline below the larger ones. The immediate support level is 103.50, with a break below it exposing the monthly low at 103.17.”
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