- The Japanese yen is among the worst performers, not benefiting from a reversal on Wall Street.
- USD / JPY clears losses and continues in a familiar range.
He USD/JPY It rose more than 50 pips from the lows and touched a new daily high at 104.10. It is trading at 104.05, slightly higher for the day, significantly above the bottom that it reached at 103.49, the lowest level since November 9.
A rally in the US dollar across the board triggered the USD / JPY rebound. The DXY rose from the lowest level since 2018 at 90.31 to 90.75. It is still negative compared to Friday’s close, but is below lows.
The yen weakened during the US session even as stock prices on Wall Street fell back from daily highs. The Dow Jones is up 60 points or 0.20% and the Nasdaq is up 1.15%, both far from the highs.
Optimism around American traders likely softened amid new closures in London and new measures in New York to stem the rise in coronavirus cases. The first began in the United States on Monday on Long Island.
From a technical perspective, the USD / JPY rally from a key level back to the trading range that has been in effect since mid-November between 103.70 and 104.60. The pair continues to be skewed to the downside; however, the yen needs to break down and stay below 103.70 to target a test of the recent lows at 103.16.
Technical levels
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