- The yen performed better among the G10 currencies despite risk sentiment.
- USD / JPY was down for the fifth day in a row, targeting 103.45 / 50.
The USD/JPY It resumed falling after a short-lived bounce to 104.10 and recently bottomed out at 103.64, the lowest level since November 9. The pair remains under pressure, with a bearish bias intact amid the weak US dollar.
Markets rose modestly on Wednesday, supported by positive news about the coronavirus vaccine. The Dow Jones is currently up 0.45% and the Nasdaq 0.04%. Pfizer mentioned that its vaccine was 95% effective in its study and plans to apply for authorization for distribution in a few days.
Looking at the data, US home construction beat expectations. In October it rose 4.9% to the highest level since February. Building permits were flat against expectations for a modest increase.
US bond yields are lower on Wednesday but far from lows. The 10-year yield bottomed out at 0.84% ​​and stands at 0.868%. Even during the rally in yields, USD / JPY remained under pressure.
The correlation between USD / JPY and risk sentiment continues to deteriorate, in part due to a weaker US dollar. While the Dow Jones remains near all-time highs, the USD / JPY is on the verge of posting the fifth consecutive decline, consolidating below 104.00, which could lead to a test of 103.00 / 10 (November lows).
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