USD/JPY Current price: 103.80
- US coronavirus developments maintain investors on the back foot.
- Japan will publish October annual inflation this Friday, seen contracting by 0.3%.
- USD/JPY is technically bearish unable to retain gains beyond the 104.00 threshold.
The USD/JPY pair is ending this Thursday as it started trading in the 103.80 price zone. It peaked for the day at 104.21 but quickly trimmed intraday gains undermined by the prevalent dismal mood. Investors are still pricing in the latest coronavirus developments in the US and the possibility of an economic contraction in Q4. Equities traded with a heavy tone but finished mixed and not far from their opening levels. Government bond yields hovered near weekly lows, also trading dully.
The Japanese macroeconomic calendar has nothing relevant to offer early Thursday, but the country will publish October National inflation this Friday. The annual CPI is expected at -0.3% worsening from 0%.
USD/JPY short-term technical outlook
The USD/JPY pair is still at risk of falling. The 4-hour chart shows that sellers surged around a firmly bearish 20 SMA, which extended its slide below the larger ones. In the mentioned time-frame, technical indicators remain within negative levels, the Momentum correcting higher, but the RSI consolidating around 36, indicating absent buying interest.
Support levels: 103.50 103.15 102.80
Resistance levels: 103.95 104.25 104.70
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