- The yen is holding onto gains across the board.
- USD / JPY is heading for the fourth consecutive daily decline.
The USD/JPY it is falling Tuesday for the fourth day in a row, bottoming at 104.04, the lowest level in a week. The Japanese currency is among the best performers.
The fall in equity markets boosted the yen. At the same time, rising US yields did not support the dollar. Economic data from the US did not help the dollar. Retail sales increased 0.3% in October, below the 0.5% expected and September figures were revised down. Industrial production rose 1.1% slightly above the 1.0% expected.
After a mixed opening on Wall Street, stocks fell as restrictions in the United States offset the optimism of the vaccine. Talks on fiscal stimulus in the US are also resuming.
Technical perspective
USD / JPY continues to move with a bearish bias. Only a close above 105.80 would negate the current outlook suggesting more gains or a consolidation at higher levels.
On the downside, the key strong barrier ahead is the 104.00 zone. A break to the downside could trigger further volatility, exposing the November low at 103.13.
Technical levels
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