- The USD / JPY consolidates the biggest gains since March 19.
- Vaccine optimism fades, Japanese data is mixed.
- Risk catalysts will lead traders on a light schedule.
USD / JPY sellers attack intraday low near 104.85, down 0.47% on a day early Tuesday. The pair hit its highest level in three weeks the day before, in a climate of risk, before turning around from 105.64.
Although the coronavirus (COVID-19) vaccine is expected to be near, as cited by Pfizer and Dr Anthony Fauci, head of Pfizer and US Heath, a few more weeks of viral infection threaten market sentiment when the US and European numbers get worrisome. US sanctions against Chinese diplomats on the Hong Kong issue as well as European tariffs on US goods worth $ 4 billion could also call into question the mood.
Against this backdrop, the S&P 500 Futures fell 0.50% while Japan’s Nikkei 225 and Australia’s ASX 200 slashed early in the day gains in press time. In addition, 10-year US Treasury yields also broke away from the recent uptrend while losing four basis points to 0.91% at the time of writing. That said, the US dollar index (DXY) also fails to extend the previous day’s rally from the lows of early September in a mixed climate.
As for the data, Japan’s current account slipped below the 1994 forecast.9 billion yen to 1,660.2 billion yen in September, while the trade balance exceeded market expectations by 144.4 billion yen. yen to 918.4 billion yen.
Given the lack of major data / events, USD / JPY traders should look for risk events / updates for new direction.
A downtrend line from July 1, currently around 105.45, continues to restrain USD / JPY bulls, which in turn steer sellers to October through September lows near 104, 00.