- USD weakness resumes after the PMI bounce.
- Vaccine rollout, Presidential-transition assist risk bulls.
- Traders eye FOMC on Wednesday.
USD/JPY trades below mid-104.00s, posting a slight loss during the Asian session. The pair fell from one-week tops 104.65 recorded on Thursday and gave back part of the previous day’s 100-pips move.
The US dollar weakness pushed the pair down even when a global risk-on tone left JPY without much buying interest among the traders.
The greenback’s strength from yesterday’s US November PMI surprise didn’t continue today as expectations of December monetary stimulus from the US Fed weighed on the dollar. Another factor pulling down the dollar is the rise in the number of coronavirus cases in the country.
The optimism surrounding the vaccine rollout helped the risk-on mood along with the news that the US President-elect Joe Biden can now start his White House transition. Both developments have enthused the risk bulls and weakened the haven-linked Japanese yen.
Traders are watchful ahead of the FOMC minutes’ release on Wednesday, as it might give clues regarding Fed action during the December meeting. USD/JPY’s recent fall needs to be confirmed with follow-through selling before a new bearish position could be initiated.
At the time of writing, one US dollar buys 104.21 Japanese Yen, down -0.21% as of 10:34 AM UTC.