USD/JPY is trading within familiar levels in the 105.30 price zone although bears have better chances being that safe-haven assets are on demand as no fiscal stimulus in the US and coronavirus cases in Europe fuel risk-off trading, FXStreet’s Chief Analyst Valeria Bednarik briefs.
Key quotes
“The immediate catalyst for the latest bout of risk aversion was news coming from the US, as leaders are unable to agree on a coronavirus stimulus package, and it seems an agreement would not be reached before the presidential election.”
“Multiple European countries are seeing a steep increase in the number of new coronavirus cases, resulting in fresh localized lockdowns and curfews. Most leaders are trying to avoid total lockdowns, but the risk of paring all economic activities for a couple of weeks has increased.”
“The USD/JPY pair has limited chances of leaving its recent range, yet the risk is higher to the downside, with a break below 105.00 probably anticipating a steeper decline.”
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