- USD / JPY registered a modest rebound during the US session.
- The optimistic mood of the market does not allow the JPY to strengthen.
- The US Dollar Index remains deep in negative territory below 90.00.
The pair USD/JPY It fell to its lowest level in two weeks at 102.96 but began to erase its losses in the US session. At time of writing, the pair is trading at 103.32, still down 0.23% on the day.
Risk flows return as US stocks rise
Earlier in the day, the widespread selling pressure surrounding the USD forced the pair to keep pushing lower. Amid the lack of significant fundamental drivers, investors showed no interest in the dollar and the US dollar index fell to its lowest level since April 2018 at 89.55 on Wednesday.
Data from the US showed that the trade deficit widened to $ 84.8 billion in November and pending home sales decreased 2.6% on a monthly basis. However, these readings did not elicit a significant market reaction.
Meanwhile, major Wall Street indices started the day in positive territory following Tuesday’s downward correction and made it difficult for the safe-haven JPY to maintain its strength. So far, the Dow Jones Industrial Average and S&P 500 indices are up 0.52% and 0.32%, respectively.
On Thursday, the US Department of Labor will release its weekly data on initial jobless claims, but light holiday trading conditions are likely to cause the pair to fluctuate in a tight range.
Technical levels
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