- USD / JPY is witnessing some selling on Thursday amid persistent selling around the dollar.
- Optimism over the COVID-19 vaccine could limit the JPY’s gains as a safe haven and help limit the pair’s slide.
- Weakened liquidity conditions due to the Thanksgiving holiday could prevent investors from opening new bearish positions.
The pair USD/JPY has seen some new sales during the European session on Thursday a has fallen to daily lows, around the region of 104.20.
Following the movement in both directions for the past two days, the pair has encountered new selling on Thursday and was being pressured by the prevailing selling bias around the USD. The worse-than-expected US labor market report on Wednesday joined the market concerns about economic consequences of the imposition of new restrictions due to COVID-19 in several US states.
The data further fueled speculation about further monetary easing by the Fed and continued to weigh on the dollar. Apart from this, a mixed performance in European equity markets has provided a modest boost to the safe-haven Japanese yen and contributed to the intraday decline in the USD / JPY pair. Having said that, Recent optimism about progress on a coronavirus vaccine could help limit deeper losses, At least for the moment.
Investors could also refrain from opening aggressive new directional positions amid relatively tight liquidity conditions due to the US Thanksgiving holiday.This makes it prudent to expect a strong continuation sell, possibly below the 104.00 level. , before starting to position for the resumption of the recent bearish movement and looking for any further decline.
USD / JPY technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
