- Wall Street remains in recent range and printed new record highs ahead of Biden’s presentation.
- US employment data deteriorates, Fed’s Powell says no time to talk about exit.
- USD/JPY keeps moving without clear direction, supported by the 20-day SMA.
The USD/JPY is about to post another close around 103.80. On the upside, it failed again to hold above 104.00 while on the flip side, found support above 103.50. Fed’s Powell mentioned it is not appropriate even to begin talking about slowing down the asset purchase program. After Powell’s remarks, US yields turned to the upside. The 10-year climbed to 1.26% and kept dollar’s losses limited, weakening the yen at the same time. Still, USD/JPY was about to end the day lower, not far from 104.00, moving without a clear direction.
The focus now turns to US President-elect Biden. At the beginning of the Asian session, he will provide details of a wide stimulus package. On Friday, data on retail sales, producer inflation and consumer sentiment are due in the US.
USD/JPY short-term technical outlook
The USD/JPY continues to be unable to move off the 103.80 area. On the downside, the 103.50 has become even stronger support now coinciding with the 20-day SMA. A break lower would point to weakness ahead, suggesting an end to the rally that started from the 102.50 bottom. Ahead of the Asian session, the pair lacks direction, and technical indicators offer mixed signs. Upside moves will likely be unstable while below 104.60/70, an area of converge of an eight-month downtrend line and the 100-day SMA; if the dollar breaks higher it would open the door to more gains over the medium term.
Support levels: 103.50 103.15 102.70
Resistance levels: 104.15 104.70 104.90
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.