- Yen remains weak as stocks rally on Wall Street, although it regained ground on Wednesday.
- USD / JPY continues with a downtrend in the medium term, uncertain in the very short term.
USD / JPY is trading flat on Wednesday after climbing from 103.75 to 104.75 (Tuesday’s high). It has stabilized near 104.50, awaiting economic data from the US after falling to 104.33 in the European session.
The beginning of the US presidential transition, President-elect Biden’s cabinet announcements, US economic data, and coronavirus vaccine news have been propelling Wall Street and playing for the rise. USD / JPY. The Dow Jones surpassed 30,000 points for the first time in history and is now challenged to hold above.
Several US economic reports will be published in the next few hours. Several were brought forward one or two days as it will be a holiday on Thursday and Friday. Among the reports, the one on requests for unemployment benefits, the GDP for the third quarter, orders for durable goods and the sale of new homes, among others, stands out.
From a technical point of view, the USD / JPY maintains a downtrend in a broad view, which would change if it raises over 105.70. In the very short term, the pair is stable around the 20-day moving average, undefined around whether to resume the lows, or extend the rebound. A drop below 104.00 would add pressure for a bearish extension to 103.60 (last week’s lows). While to the upside above 104.75, the next strong resistance is at 104.95.
Technical levels
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