10.09 - USD/JPY attempts a bounce but faces stiff resistance
- by George Solotarov
USD/JPY is looking to extend the bounce from a daily low of 106.05, as the bulls cheer the risk-on market environment. With hopes over the coronavirus vaccine still alive and increasing expectations of the US stimulus deal, the market mood remains upbeat and fuels the bounce in the S&P 500 futures and Treasury yields. However, the reduced haven demand for the US dollar keeps a check on USD/JPY’s upside attempts.
From a near-term technical perspective, the spot reversed a dip below the 50-hourly Simple Moving Average (HMA) at 106.10. The pullback, however, is likely to meet fresh supply at 106.18.