USD/JPY: Bears keep the reins for sixth day near 104.50 amid mixed clues
- USD/JPY recovers early Asian losses while bouncing off 104.43.
- Risk dwindles as virus woes combat hopes of further stimulus and geopolitical headlines.
- Markets in Tokyo are off for Respect-for-the-Aged Day, Chicago Fed National Activity Index, Fed Chair’s speech will be the key.
USD/JPY seesaws around 104.45 during Monday’s Asian session. Even if Japan’s close and the recent uptick in risk barometers challenge the yen major’s immediate downside, bears refrain from stepping back from the seven-week low.
Off in Tokyo joins a lights calendar…
Other than the extended weekend for Japanese traders, the absence of any major data/events from the rest of the Asia-Pacific nations also hinders USD/JPY performance off-late.
Even so, worsening coronavirus (COVID-19) conditions in the UK and Europe join the US-Iran tussle to probe the risk-tone sentiment. While the British Chief Medical Officer suggested the return of lockdowns, virus numbers are also rising from Spain and Germany. Elsewhere, America is likely to sanction the firms helping Iran build arms while Tehran laughed on the Trump administration’s failures at the United Nations (UN).
On the contrary, the upbeat statement from Chinese President Xi Jinping and expectations of further stimulus for the Asian major under the presidency of Yoshihide Suga favor the market optimism. Not only from Japan but the UK and the US are also up for additional money supply.
Against this backdrop, S&P 500 Futures gain 0.17% to 3,321 whereas stocks in Australia and New Zealand are mildly offered by the press time.
Looking forward, the Asian session is likely to remain dull amid a lack of major catalysts. Though, Chicago Fed National Activity Index, expected 1.95 versus 1.18 prior, will precede Federal Reserve Chairman Jerome Powell’s speech to please the momentum traders.
Technical analysis
Only if the pair bounce back beyond the August month low of 105.10, it can witness the 106.00 again, else sellers will keep eyes on the July low near 104.20 for fresh entries.
Reprinted from FXStreet,the copyright all reserved by the original author.
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