USD/JPY to extend its slide on a break below 103.50

The dollar is out of the market favor, and so does the yen. The USD/JPY pair is trading in a tight 20 pips’ range ever since the day started, neutral-to-bearish in the near-term, as mounting hopes about massive immunization against covid underpin high-yielding assets. USD/JPY needs to break below 103.50 to see further falls, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“Market players are more optimistic at the beginning of the new trading week, amid hopes for massive vaccination against COVID-19 announced to start between December and January in the US and some European countries. At least in the US, Pfizer has already applied for emergency approval, while in the Old Continent, Germany, the UK and Spain had also announced plans to kick start immunization in the next couple of months.”

“The 4-hour chart shows that a bearish 20 SMA keeps providing dynamic resistance, currently around at 103.85, as technical indicators head nowhere, the Momentum around its 100 level and the RSI at 39.” 

“Given the market’s positive mood, a steeper decline seems unlikely. The USD/JPY pair would need to break the 103.50 support level to extend its decline in the upcoming sessions.”