USD/JPY: Mildly offered towards 104.00 amid fresh risk-off, Japan’s stimulus extension

  • USD/JPY stays near the intraday low, drops for the fourth-day in a row.
  • Japan government extends compensation scheme for covid-hit firms to February.
  • UK government rushes for AstraZeneca’s vaccine approval, Trump announced vaccine delivery.
  • China to impose anti-dumping duties on Aussie wine, Sino-American and US-Tehran tension also weigh risks.

USD/JPY drops to 104.10, down 0.14% intraday, during the Asian session on Friday. The pair recently refreshed the intraday low amid challenges to the previous risk-on mood as well as the Japanese government’s announcement concerning the coronavirus (COVID) relief stimulus.

Yoshihide Suga-led government recently said, per Reuters, that it will extend until February the compensation scheme for covid-hit firms that retain jobs. The stated aid package was to expire in December previously.

Earlier in the day, Japan’s Tokyo Consumer Price Index (CPI) details for November couldn’t entertain the USD/JPY traders even with downbeat figures.

Talking about the risks, the UK Government pushes the Medicines and Healthcare Products Regulatory Agency (MHRA) to assess Oxford/AstraZeneca covid-19 vaccine for a temporary supply even as the drug manufacturer’s latest announcement, on Thursday, stated that they’re holding one more trial amid some production issues over the less-dosage vaccine.

Also on the positive side could be the news, shared by US President Donald Trump, that the American will receive covid vaccine starting from next week.

It should be noted that China’s hint of additional trade-punitive measures over Australia joins that Washington-Beijing tension over trade and political issues to weigh the risks. Further, the US and Iran are also at loggerheads over the missile program and also dim the mood.

That said, optimism that Joe Biden and the team will be able to combat virus woes, at least for the US, as well as the vaccine hopes battle bears.

Against this backdrop, S&P 500 Futures drop 0.20% whereas Japan’s Nikkei 225 gains 0.40% by press time.

Given the lack of major data/events, USD/JPY traders need to check with the risk catalysts for fresh impulse.

Technical analysis

A gradual downward trajectory towards the support line of a three-week-old symmetrical triangle, at 103.85, can’t be ruled out until USD/JPY rises above 104.45 level, comprising the upper line of the stated triangle and 21-day SMA.

additional important levels

Today last price 104.1
Today Daily Change -0.15
Today Daily Change % -0.14%
Today daily open 104.25
Daily SMA20 104.46
Daily SMA50 104.93
Daily SMA100 105.52
Daily SMA200 106.63
Previous Daily High 104.48
Previous Daily Low 104.22
Previous Weekly High 105.14
Previous Weekly Low 103.65
Previous Monthly High 106.11
Previous Monthly Low 104.03
Daily Fibonacci 38.2% 104.32
Daily Fibonacci 61.8% 104.38
Daily Pivot Point S1 104.15
Daily Pivot Point S2 104.05
Daily Pivot Point S3 103.89
Daily Pivot Point R1 104.41
Daily Pivot Point R2 104.58
Daily Pivot Point R3 104.67



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