USD/JPY penertrates 104.00 and sellers look to 103.20s

• USD/JPY bears in control as equities struggle for air.
• Bears take out the 104 level and eye a continuation below critical support structures. 

USD/JPY is currently trading at 103.99 having printed a low of 103.97, sinking from structural highs of 104.26 and is down some -0.21% at the time of writing. 

The price action has moved in accordance with the following earlier analysis: USD/JPY Price Analysis: Bears looking to break below 104 area and has tested below the 104 figure. 

Asian equities have suffered a bearish start to the end of the week following a poor performance on Wall Street and investors could be getting cold feet which might spell some Japanese yen repatriation. 

Concerns about US stimulus and climbing COVID-19 cases have weighed globally on optimism.

Australian S&P/ASX 200 futures were down 0.54% in early trading, while Japan’s Nikkei 225 futureswere up 0.09%. Hong Kong’s Hang Seng index futures were up 0.44%.

The Nikkei is currently down 0.6%. 

Attention on the stimulus package was especially concerning following US data overnight that showed the number of Americans filing first-time claims for jobless benefits jumped to a near three-month high.

Spiking COVID-19 cases have weighed on economic activity and that is only expected to get worse. 

USD/JPY technical analysis

Meanwhile, from a technical standpoint, the hourly chart has moved in accordance with the prior analysis as follows:

On a break of 103.97, 103.83 is a keen target where a break of 103.75 opens the 103.27 high volume area and at the extreme of the Nov and Dec to date range.