- Dollar with mixed results in the market.
- USD / JPY gains momentum after exceeding 20-day moving average (105.50).
He USD / JPY gained momentum in the last hours and climbed from 105.55 to 105.75, reaching the highest level in a week. The price remains in the zone of highs, with a bullish intraday bias. The dollar will present mixed results in the market on Tuesday, without a clear direction.
Stocks on Wall Street are pointing to a slightly higher open after Monday’s slide. This is a part of the USD / JPY support on Tuesday. Another important factor is the rebound in US Treasury yields.
Economic data released Tuesday showed a rebound in building permits and home starts, one above and the other below expectations. The data had no impact on the market. Traders are keeping an eye on possible developments with respect to the new round of US fiscal stimulus.
Today is the last day according to Nancy Pelosi to reach an agreement that could lead to the approval of a bill before the presidential elections. US policy is expected to continue to dominate the headlines in the coming weeks.
Technical overview
He USD / JPY is testing the 55-day moving average. A close above 105.75 could give more strength to the dollar, to go to test the October highs at 106.10 / 15. In case of not being able to overcome it, an operation in the range between 105.75 and 105.45 could be expected.
In the opposite direction, below 105.25, 105.00 would be exposed and the October lows at 104.90.
Credits: Forex Street
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