- USD / JPY remained depressed during the first half of trading action on Friday.
- A softer tone around the USD, falling US bond yields put some pressure on.
- Optimism from the COVID-19 vaccine undermined the safe haven JPY and helped limit losses.
The pair USD/JPY it remained depressed during the first European session, although it has managed to bounce around 25 pips from multi-day lows. The pair was last seen trading in the 104.15 region, down around 0.10% for the day.
The pair prolonged this week’s retracement slide from the 104.75 region and witnessed some subsequent selling for the second consecutive session on Friday. The drop was solely sponsored by a softer tone around the US dollar, which was being weighed down by hopes for more stimulus from the incoming Biden administration.
Bearish traders followed signs of a further downward leg in US Treasury yields, although prevailing upbeat sentiment in the market undermined the Japanese yen as a safe haven and helped limit the slide. Global risk sentiment remained well supported by optimism about the development of a possible vaccine for the highly contagious coronavirus disease.
The USD / JPY pair managed to find some support near the 103.90 region, although the attempted recovery move risks fading away fairly quickly. This makes it prudent to wait for some solid follow-up buying before positioning for any further appreciation moves amid the absence of relevant US economic releases.
Technical levels
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