- Deteriorating risk sentiment boosted the safe-haven JPY pressurising USD/JPY.
- Declining US bond yields weighed on the USD adding to the downside pressure
- The move lacks follow-through so aggressive sellers should be cautious
USD/JPY slipped lower in the European session but held above 105.00 a key psychological mark.
The pair has struggled to extend the rebound from 103.00 a multi-month low, and has traded in a narrow range in the past three trading sessions. Fears over the economic impact from rising covid cases is capping recent optimism over a potential COVID-19 vaccine.
The concerns were reflected in a modest decline in the US stock futures, which underpinned demand for the safe-haven Japanese yen putting USD/JP under pressure. Heavy falls in US Treasury bond yields, dragging on the US Dollar, added to the pair’s negative bias.
US consumer inflation figures and Initial Weekly Jobless Claims will be in focus, which together with risk sentiment will drive USD/JPY.
Currencylive.com is a news site only and not a currency trading platform. Currencylive.com is a site operated by Wise US Inc ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.
