- The USD / JPY fell 108.77, the highest since April 09, 2020.
- Commercial sentiment fades with optimism amid mixed news about the coronavirus (COVID-19), fears of American civil unrest.
- A light calendar in Japan will attach great importance to qualitative catalysts for a new impetus.
The USD / JPY climbed from its 23-day high to 108.65 during the Asian pre-Tokyo session on Wednesday. After applauding the broad sense of risk earlier, the pair of bulls seem to be taking a break amid mixed macros and a lack of important data.
The titles of the viruses, the light calendar call into question the feeling of previous risk….
Fears of the second wave of the coronavirus (COVID-19) in the United States, as cited by the NBC, seem to have recently weighed on the previous optimism of the market.
Also challenging the earlier optimistic mood could be fears emanating from the American civil unrest that seem to have ignored President Donald Trump’s warning.
As a result, the S&P 500 Futures deviates from Wall Street’s optimistic performance the previous day, while dropping 0.10% to 3,075 at press time.
World markets have encouraged hopes of an economic recovery in the United States while praising hopes for further stimulus from the ECB. In addition, the new battle between South Korea and Japan, coupled with Moody’s worrying comments on Japan, weighs on the Japanese yen on Tuesday.
In the aftermath, a light calendar in Japan will push traders of the pair to seek updates from the United States, also concerning the pandemic, for a new impetus.
Technical analysis
Unless falling below 108.10, including several peaks marked since April 16, bulls could continue to target the April peak near 109.40.