USD/JPY Forecast: Pressure on the dollar remains

USD/JPY Current price: 103.17

• Coronavirus-related concerns continue to undermine the market’s mood.
• US Initial Jobless Claims are foreseen at 833K in the week ended December 25.
• USD/JPY is consolidating losses, has room to extend its slump once below 102.86.

The USD/JPY pair trades around 103.15, down for the day as pressure on the greenback continues. The world celebrates the year-end, with some markets off and some due to early closes. European stocks are sharply down, led by the FTSE, which plunged on the pound's strength after the UK Parliament passed the post-Brexit deal.

The focus remains on coronavirus, amid news indicating resurgent contagions and deaths, but also the beginning of immunization.  Japan reported 3,476 new cases and 43 deaths in the last 24 hours, whit over 1,000 reported in Tokyo. The numbers are records for the country, and the government is studying restrictive measures.

Trading will likely come to a halt after the release of US Initial Jobless Claims for the week ended December 25, foreseen at 833K.

USD/JPY short-term technical outlook

The USD/JPY pair consolidates losses, maintaining the bearish stance in the near-term. The 4-hour chart shows that the price remains well below bearish moving averages, with the 20 SMA currently around 103.50. Technical indicators remain near daily lows, with limited directional strength. It seems unlikely, but the pair could extend its slump once below December’s low at 102.86.

Support levels: 102.80 102.40 102.10

Resistance levels: 103.50 103.90 104.30

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