USD/JPY: Rises for third day on Biden transition news, eyes BOJ’s Kuroda
- USD/JPY trims early-Asian losses as Tokyo open welcomes the risk-on mood.
- Trump concedes defeat, ex-Fed Chair Yellen likely be the next Treasury Secretary.
- Vaccine hopes, stimulus expectations and Brexit optimism favor bulls.
USD/JPY refreshes intraday high to 104.61 as markets in Tokyo open for Tuesday’s trading. The pair recently picked up bids after US President Donald Trump ordered General Services Administration (GSA) to formally begin the power-shift process to President-elect Joe Biden. It’s worth mentioning that the pair marked the heaviest gains in two weeks the previous day after the US dollar rose across the board on upbeat PMI data.
In addition to Biden’s White House entry, markets also cheer increasing odds of Janet Yellen’s selection as the next Treasury Secretary. The ex-Fed Chair managed to defy the slowdown crisis when in command.
Elsewhere, news from Sankei suggests Japan’s third stimulus could be 20 trillion yen while the coronavirus (COVID-19) resurgence in Tokyo pushes the Asian major’s government towards suspending the “Go To Travel” subsidy program. As per the latest data, Tokyo’s covid tally rises to 37,708 active cases by the end of November 22.
Despite surging virus cases, progress in the COVID-19 vaccine and treatments has been keeping the traders hopeful to combat the virus sooner than later. The recent update indicates that the AstraZeneca-backed small dosage cure got a 90% effective rate.
On the separate fronts, the European Union (EU) and the UK policymakers are rushing for the Brexit deal and the US is up for challenging the China-backed trade group with its Western allies.
That said, Japan’s Nikkei 225 marks 1.90% gains during the initial hour of trading while S&P 500 Futures and the US 10-year Treasury yields also benefit from the latest risk-on mood.
Looking forward, comments from the BOJ Governor Haruhiko Kuroda could be eyed as immediate catalysts while risk headlines remain as the key drivers.
Technical analysis
A clear break of 21-day SMA, currently around 104.47, enables the USD/JPY buyers to eye 50-day SMA level near 105.00.
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