- The US dollar continues to face pressure against the yen.
- USD / JPY returns below the key zone of 104.00, targeting the November low at 103.15.
The USD/JPY it fell further back during the US session and fell to 103.80. It remains on a bearish bias after being rejected above 104.00. The recovery of the US dollar was short-lived.
On Wednesday, USD / JPY posted the lowest daily close in nearly two weeks. It trades most of the time during the last hours in positive territory, but was unable to sustain gains.
Stocks in the US are mixed. The Dow Jones is down 0.40% and the Nasdaq is up 0.50%. Investors are concerned about the impact of new restrictions around the world to stem the spread of the coronavirus. On Wednesday, the US recorded more than 170,000 new cases, offsetting the positive impact of the vaccine news.
Economic data for the US was also mixed. Initial jobless claims unexpectedly rose to 742,000 last week and continuing claims fell below 7 million for the first time since March. Existing home sales increased more than 4% to the highest level since 2006.
The yen benefited from the fall in US bond yields. The decade fell from about 0.90% to 0.846%. Additionally, risk sentiment favored demand for the Japanese yen and weighed on commodity currencies.
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