- The dollar remains weak due to a fall in Treasury bond yields.
- USD / JPY is still under pressure although for now over 112.80 / 113.00.
The USD / JPY is falling for the fourth day in a row on Tuesday in a climate of risk aversion unleashed by the new variant of COVID. The pair fell to 112.67, the lowest level since October 11, before bouncing back to the 113.00 area, where it is trading.
The yen it remains strong throughout the market, helped by declining Treasury yields and risk aversion. The rally in bonds weakened the dollar against the majors coins, which partly limited the advance of the yen against currencies such as the EUR and GBP.
A confirmation of the USD / JPY below 112.80, would point to more losses in the short term. To the upside, just a return above 114.00 could leave the correction behind.
Facts Ahead and Jerome Powell Exposure.
Hopefully the focus will remain on what happens to global equity markets and also to Treasuries. In terms of data, the US will release the S & P / Case-Shiller Home Price Index for September, the Chicago PMI for November and the Conference Baord Consumer Confidence Index.
What’s more, Jerome Powell, Fed Chairman and Treasury Secretary Janet Yellen will speak before a Senate committee.
Technical levels
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