The Dollar Yen continues its bearish trend after the market’s mood has improved this Tuesday, with equities in recovery and the dollar down against all major rivals but the JPY. The pair trades around 104.40, slightlyabove daily basis, amid the lack of interest for the safe-haven Japanese currency.
Multiple vaccine makers have reported high effectiveness levels to prevent contagions and are applying before regulators for emergency approval and use.
In Japan, data published at the beginning of the day was generally upbeat. The November Jibun Bank Manufacturing PMI was upwardly revised from 48.3 to 49. October’s Unemployment Rate came in at 3.1% as expected, while the Jobs/Applicants Ratio improved to 1.04.
Today, the focus will stay on the stimulus talks and US ADP jobs data in the afternoon, which will likely impact the wider market sentiment and eventually the USD major currencies. Also, traders will be trading the Friday’s NFP number which is expected to help the USD gain some previous losses. Meanwhile, markets paid little heed to the comments from the BOJ Deputy Governor M. Amamiya, as he offered no new surprises.
USDJPY still holding key resistance at 104.40 as I write this morning. Shorts stops above the 104.50 price level. A break higher is a buy signal targeting 104.75 and can go probably as far as the next strong resistance of 105.50. Try shorts with a stoploss above 105.70.
Shorts at 104.40 target have a best support at 103.80. Longs need stops below103.60. A break below here is an important medium term sell signal.
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