- USD / JPY is trying to bounce along with the DXY index.
- Risk aversion returns after another all-time high on Wall Street.
- Investors’ attention is focused on updates on US fiscal stimulus and ADP employment data.
Once again have appeared new purchases near the 104.20 region, allowing the USD / JPY pair to rebound above the 104.50 level at the start of the European session Wednesday, as the US dollar bears take a breather after the previous day’s slide.
Risk aversion has returned during the Asian session on Wednesday after the new high seen on Wall Steet amid revival of US fiscal stimulus talks, which boosted the assets with the highest perceived risk.
This comes after Congress released a $ 908 billion aid proposal On tuesday night. Additionally, US Treasury Secretary Steve Mnuchin and House Speaker Nancy Pelosi held stimulus talks for the first time since the election.
The US Dollar DXY Index fell to a new two-and-a-half-year low at 92.16 on improving risk sentiment. Meanwhile, USD / JPY’s bounce from lows can be attributed in part to the pause in the dollar’s decline, as investors await fresh news on the stimulus talks for new momentum.
The US ISM manufacturing PMI for November did not meet the estimates reaching 57.5 points, while the Fed chairman, Jerome Powell reiterated his cautious stance on the economic recovery, compounding the pressure on the dollar.
Looking ahead, investors’ attention will remain on ADP’s US stimulus talks and employment data, which will likely influence overall market sentiment and ultimately the pair.
USD / JPY technical levels
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