- USD/JPY extends the previous day’s downbeat performance, refreshes intraday low.
- US covid cases keep refreshing all-time highs, Fed’s Powell, RBNZ’s Orr convey economic worries.
- Japanese PM Suga turns down calls of national emergency even as daily cases refresh record high.
- Virus updates, US Michigan Consumer Sentiment can provide fresh impulse.
USD/JPY refreshes the intraday low to 105.04, currently down 0.05% on a day to 105.08, as markets in Tokyo open for Friday’s trading. The yen pair remains heavy for the second day as the coronavirus (COVID-19) worries dim vaccine hopes.
Suga plays defensive”¦
On Thursday, Japan confirmed over 1,600 new covid cases, a record daily high since the outbreak of the virus early this year, as per Kyodo news. Even so, Prime Minister (PM) Yoshihide Suga rejects the chatters suggesting a state of emergency while keeping local restrictions on the gatherings and activities.
Global markets previously cheered the vaccine hopes before US Federal Reserve Chairman Jerome Powell warned markets to not be too optimistic for the economic recovery. Following that, Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr also reiterated the economic risks while citing odds of global border restrictions to remain in place until early 2022.
Powell’s comments took clues from the all-time daily high of American COVID-19 cases to weigh Wall Street the previous day. However, S&P 500 Futures part ways in the consolidation amid a lack of major clues while the US 10-year Treasury yields remain sluggish below 0.90 by press time.
The lack of economics may keep USD/JPY traders directed towards the virus updates in Asia. Though, the US Michigan Consumer Sentiment Index for November, expected 82 versus 81.8 prior, can decorate the economic calendar.
Technical analysis
Unless breaking the 100-day SMA level of 105.85, USD/JPY bulls are less likely to return.
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