USD/JPY slides to fresh session lows, around 104.25-20 region
USD/JPY witnessed some selling on Thursday amid persistent selling surrounding the greenback. COVID-19 vaccine optimism might cap gains for the safe-haven JPY and help limit the downside. Holiday-thinned liquidity conditions could further hold investors from placing fresh bearish bets.
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The USD/JPY pair is neutral-to-bearish in the near-term, as the 4-hour chart shows that it is unable to surpass a mildly bearish 20 SMA. The longer moving averages gain bearish strength above the shorter one, skewing the risk to the downside. The Momentum indicator remains directionless around its midline, while the RSI indicator turned south, currently at 45, further supporting another leg lower.
Support levels: 103.95 103.50 103.15
Resistance levels: 104.65 105.00 105.40
The American dollar is still the weakest currency across the FX board, with the JPY appreciating despite a sour market’s mood. Thinned trading amid a US holiday sees major pairs holding within familiar levels. The USD/JPY pair is trading lower in range in the 104.20 price zone.
Japan published the final reading of the September Leading Economic Index, which resulted at 92.5, below the 92.9 expected. The Coincident Index for the same period improved to 81.1. The US won’t release macroeconomic data for the rest of the week.
SPECIAL WEEKLY FORECAST
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If the USD/JPY saw it largest one day rally since the March panic with the Pfizer vaccine announcement on November 9th, the dollar's steady fall over the subsequent nine sessions is proof, if any were needed, that the grinding reality of the pandemic is still the overriding factor in the markets.