USD/JPY to retest the November low at 103.17

The USD/JPY pair is trading near a daily low of 103.78 and poised to extend its decline as coronavirus concerns maintain the market’s sentiment depressed, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“Headwinds related to the coronavirus pandemic hurt demand for high-yielding assets. The US continues reporting over 150K new cases per day while hospitalizations soar. The situation is just a bit better in Europe, although the Union is also navigating the second wave and is a tough one. Vaccine hopes won’t prevent an economic downturn in the ongoing quarter.”

“The 4-hour chart shows that the 20 SMA has extended its slide above the current level and below the larger moving averages, maintaining a strong bearish slope. Technical indicators in the mentioned time frame, head south although with limited momentum. The immediate support level is 103.50, en route to the year low at 103.15.”