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USD / JPY struggles to extend its recovery above 104.40

  • The USD / JPY recovery attempt from the 104.10 low, stops below 104.40.
  • The Japanese yen continues to trade in a risk-averse market.
  • USD / JPY risks breaking below 104.00 – Commerzbank.

The US dollar is attempting to rebound after falling to a five-week low at 104.10 against the Japanese yen on Wednesday. USD / JPY, however, remains unable to break above 104.40 and remains dangerously close to multi-month lows at 104.00.

The Japanese yen appreciates in a session of risk aversion

The dollar is heading south for the third day in a row, and the safe-haven yen is appreciating across the board amid strong risk aversion. Equity markets are seeing significant declines as COVID-19 infections rise in the US and Europe.

News that France and Germany are considering further lockdowns has raised concerns about potential damage to the nascent economic recovery that triggered a race to safety that has fueled demand for the Japanese yen.

In addition, uncertainty about the US elections is helping to curb the appetite for risk. The market anticipates Biden’s victory, however, with the distance between the two top candidates getting closer in polls, investors are becoming increasingly cautious, fearing sharp price movements as the prices approach. elections.

USD / JPY at risk of breaking 104.00 support – Commerzbank

From a technical point of view, Karen Jones, head of the FICC technical analysis research team at Commerzbank, sees USD / JPY likely to extend its decline below 104.00: “USD / JPY was under pressure again , remains limited by the three-month downtrend at 105.70 and the focus is on the September low of 104.00. This, along with the 200-month MA at 103.93 saves the Fibonacci retracement of 103.43 / 78.6%, which is the last defense for the March low of 101.18 ”.

Technical levels

USD/JPY

Panorama
Today’s Last Price 104.32
Today’s Daily Change -0.09
Today’s Daily Change% -0.09
Today’s Daily Opening 104.41
Trends
SMA of 20 Daily 105.33
SMA of 50 Daily 105.57
SMA of 100 Daily 106.13
200 SMA Daily 107.2
Levels
Daily Previous Maximum 104.89
Daily Previous Minimum 104.39
Weekly Preview Maximum 105.75
Weekly Prior Minimum 104.34
Monthly Previous Maximum 106.55
Minimum Previous Monthly 104
Daily Fibonacci 38.2% 104.58
Fibonacci Daily 61.8% 104.7
Daily Pivot Point S1 104.24
Daily Pivot Point S2 104.06
Daily Pivot Point S3 103.74
Daily Pivot Point R1 104.74
Daily Pivot Point R2 105.07
Daily Pivot Point R3 105.24

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Credits: Forex Street

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