- USD / JPY is rising for the third consecutive trading day on Monday.
- The JPY struggles to find demand as the market sentiment remains bullish.
- The US Dollar Index stabilizes near 90.40 after having declined earlier in the day.
The pair USD/JPY retains its bullish momentum on Monday as the JPY continues to struggle to find demand in the risk-positive market environment. At time of writing, the pair was trading at new weekly highs at 105.42, gaining 0.46% on the day.
With an eye on global equity indices
Market mood remains bullish at the start of the week with major European stock indices rising 0.5-2% on the day. The US markets will be closed due to the Presidents Day holiday and USD / JPY is likely to consolidate its gains in the second half of the day.
Earlier in the day, data from Japan showed December Industrial Production declining 1% and outperforming the market’s expectation of a 1.6% decline. Confirming the risky positive market environment, the Nikkei 225 Index gained nearly 2% on Monday and rose above 30,000 for the first time in more than 30 years.
Additionally, Japan’s Ministry of Health announced on Sunday that it officially approved Pfizer-BioNTech’s coronavirus vaccine.
On Tuesday, the tertiary industry index will be included in the Japanese economic docket. If risk flows continue to dominate financial markets on Tuesday, JPY could remain on the defensive and additional gains could be seen for USD / JPY during Asian trading hours.
Technical levels
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