- Risk appetite keeps the yen weak.
- USD / JPY bounces from lows since March.
The USD / JPY is rising after having lost a lot of ground at the close of last week, when it fell to 103.14, the lowest level since mid-March. The pair is trading at 103.82, at daily highs. The rise occurs before an advance of the stock markets in the world and with a rebound of the dollar in the last hours.
The greenback is recovering a small part of the ground lost last week in the market. The week of the US presidential elections did not generate a drop in the stock markets but it did weaken the dollar. While the political landscape is still unclear, Biden was proclaimed the winner and the market seems to be discounting that no major problems will arise.
The latest US economic data, including Friday’s employment report, shows that the recovery is steady, albeit gradually. Today there will be no relevant reports. Featured on the calendar is the presentation by Loretta Mester, president of the Cleveland Fed. On the Asian morning on Tuesday there will be inflation data from China.
Technical overview
The USD / JPY maintains a dominant bearish tone but in the very short term the tone favors the dollar. At 103.85 the 20 SMA is passing in four hours, and above it the next strong resistance is seen at 104.10, where a return above would leave the dollar strengthened to extend the rises.
In the opposite direction, at 103.40 is the first support to watch out for. Then attention will turn to the recent lows at 103.15 below, protecting the 103.00 area.
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Credits: Forex Street
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