USD/JPY rebounds towards 104.50 as USD selling stalls


  • USD/JPY attempts a bounce alongside the DXY.
  • Risk-off returns in Asia after a record rally on Wall Street.
  • Focus remains on US fiscal stimulus updates and ADP jobs.

Fresh bids once again emerged near the 104.20 region, allowing a tepid bounce in USD/JPY towards 104.50, as the US dollar bears took a breather after the overnight slump.

The sentiment has turned sour in Asia this Wednesday after the record rally seen on Wall Steet amid the revival of the US fiscal stimulus talks, which sent the riskier assets higher.

This comes after the Bipartisan Congress unveiled a $908 billion aid proposal late Tuesday. Also, the US Treasury Secretary Steve Mnuchin and House of Representatives Speaker Nancy Pelosi held stimulus talks for the first time since the election.

The US dollar index tumbled to fresh a two-and-a-half-year low at 92.16 on improved risk sentiment. Meanwhile, the USD/JPY bounce from lows can be partly attributed to the pause in the dollar’s sell-off, as investors await the stimulus talks for fresh impetus.

The US ISM Manufacturing PMI for November missed estimates with 57.5 while Fed Chair Jerome Powell reiterated his cautious stance on the economic recovery, exacerbating the pain in the buck.

Looking ahead, the focus will remain on the stimulus talks and US ADP jobs data, which will likely influence the broader market sentiment and eventually the major. Meanwhile, markets paid little heed to the comments from the BOJ Deputy Governor M. Amamiya, as he offered no new surprise.

USD/JPY technical levels

USD/JPY

Overview
Today last price 104.44
Today Daily Change 0.13
Today Daily Change % 0.12
Today daily open 104.3
 
Trends
Daily SMA20 104.39
Daily SMA50 104.9
Daily SMA100 105.44
Daily SMA200 106.53
 
Levels
Previous Daily High 104.58
Previous Daily Low 104.18
Previous Weekly High 104.76
Previous Weekly Low 103.68
Previous Monthly High 105.68
Previous Monthly Low 103.18
Daily Fibonacci 38.2% 104.34
Daily Fibonacci 61.8% 104.43
Daily Pivot Point S1 104.13
Daily Pivot Point S2 103.96
Daily Pivot Point S3 103.74
Daily Pivot Point R1 104.53
Daily Pivot Point R2 104.75
Daily Pivot Point R3 104.92

 

 

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD retreats from new highs amid dollar strength

GBP/USD has fallen off the peak of 1.3719, the highest since 2018, amid fresh dollar strength. Optimism about the UK's vaccine campaign and lower cases boosted sterling earlier. The greenback awaiting Biden's first moves as President. 

GBP/USD News

EUR/USD falls toward 1.21 ahead of Biden´s inauguration

EUR/USD has been descending toward 1.21. President-elect Biden is inaugurated later in the day and hopes of stimulus are high after Treasury Secretary nominee Yellen's testimony. 

EUR/USD News

Gold: Bulls recapture 200-DMA ahead of Biden's inauguration

Gold prices are attempting to correct higher above 200-DMA. The metal cheers rising US inflation expectations amid hopes of a massive stimulus package under the incoming Biden administration. 

Gold news

Bank of Canada Rate Decision Preview: No change anticipated in interest rate

The Bank of Canada is widely expected to keep monetary policy and quantitative easing unchanged at its meeting on Wednesday in spite of new COVID-19 provincial lockdowns and a slowing economy.

Read more

US Dollar Index: Upside target remains at 91.00

DXY met buyers in the 90.30 region earlier on Wednesday and now resumes the upside to the 90.50/55 band.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures