USD/JPY in downside consolidation around 104.50, US data, stimulus news eyed
|- USD/JPY bears take a breather near mid-104.00s.
- Market sentiment remains mixed, DXY subdued.
- US stimulus news and macro data in focus.
USD/JPY is consolidating the recent drop from 104.75 levels in Thursday’s Asian trading amid a broadly subdued US dollar and mixed market sentiment.
The major has been closely following the US dollar price action and stalls its decline, as the bears take a breather ahead of a fresh batch of US economic releases.
The flight towards riskier assets, amid coronavirus vaccine-driven economic optimism and renewed US fiscal stimulus talks, has weighed heavily on the safe-haven greenback.
Further, the weakness in the US Treasury yields and mixed sentiment on the Asian equities keeps the downside pressure intact on the spot.
However, the analysts at UOB Group note that the further downside looks unlikely and the price could hold onto its recent trading.
Our expectation for USD to ‘test the 103.70 support’ was incorrect as it rebounded strongly after touching 103.81. The relatively choppy price actions have resulted in a mixed outlook. USD could continue to trade in a choppy manner, albeit likely within a higher range of 104.00/104.50.
USD/JPY technical levels
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