- USD/JPY extends losses for a third straight session on Thursday.
- Covid fears boosted the safe-haven JPY adding pressure.
- A mild tick higher in the USD could limit deeper losses before US Q3 GDP .
USD/JPY extended its steady intraday retracement slide from mid-104.00s and has now dropped back closer to five-week tops set in the previous session.
The pair struggled to capitalize on its move higher, meeting resistance at higher levels, before edging lower back into negative territory for the third straight session on Thursday. Investors shrugged off the latest BoJ policy update and the Japanese yen pushed higher as investors fretted over rising covid cases..
JPY weakened slightly during the Asian session after the BoJ lowered its growth and inflation projections for fiscal 2020/21In the pursuant press conference the BoJ governor, Haruhiko Kuroda said that the central bank stands ready to ease monetary policy if needed.
Investors are anxious that renewed lockdown restrictions to stem the spread of coronavirus could undermine the fragile global economic recovery. European equity markets pared some opening gains, offering further support to the safe haven JPY adding pressure to USD/JPY.
A mild uptick in the US dollar could limit deeper losses, at least for now. Uncertainty in the US political climate might keep buyers on the side lines capping any attempted recovery for USD/JPY. A pullback towards September monthly swing low at 104.00 mark, looks likely.
Investors look towards the release of US Q3 GDP data. A print outside of the expected figures could drive the USD .