USD/JPY in downside consolidation around 104.50, US data, stimulus news eyed

USD/JPY bears take a breather near mid-104.00s.
Market sentiment remains mixed, DXY subdued.
US stimulus news and macro data in focus.

Dhwani Mehta FXStreet

USD/JPY is consolidating the recent drop from 104.75 levels in Thursday’s Asian trading amid a broadly subdued US dollar and mixed market sentiment.

The major has been closely following the US dollar price action and stalls its decline, as the bears take a breather ahead of a fresh batch of US economic releases.

The flight towards riskier assets, amid coronavirus vaccine-driven economic optimism and renewed US fiscal stimulus talks, has weighed heavily on the safe-haven greenback.

Further, the weakness in the US Treasury yields and mixed sentiment on the Asian equities keeps the downside pressure intact on the spot.

However, the analysts at UOB Group note that the further downside looks unlikely and the price could hold onto its recent trading.

Our expectation for USD to ‘test the 103.70 support’ was incorrect as it rebounded strongly after touching 103.81. The relatively choppy price actions have resulted in a mixed outlook. USD could continue to trade in a choppy manner, albeit likely within a higher range of 104.00/104.50.

USD/JPY technical levels

USD/JPY

Overview
Today last price	104.47
Today Daily Change	-0.04
Today Daily Change %	-0.04
Today daily open	104.51

Trends
Daily SMA20	104.39
Daily SMA50	104.88
Daily SMA100	105.41
Daily SMA200	106.5

Levels
Previous Daily High	104.75
Previous Daily Low	104.23
Previous Weekly High	104.76
Previous Weekly Low	103.68
Previous Monthly High	105.68
Previous Monthly Low	103.18
Daily Fibonacci 38.2%	104.55
Daily Fibonacci 61.8%	104.43
Daily Pivot Point S1	104.24
Daily Pivot Point S2	103.97
Daily Pivot Point S3	103.71
Daily Pivot Point R1	104.76
Daily Pivot Point R2	105.02
Daily Pivot Point R3	105.29

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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