- USD/JPY remains depressed for the fourth day in a row.
- A lack of major data, off in Japan restricts the pair’s moves.
- Hopes of US re-open confront downbeat global PMIs.
USD/JPY drops to 106.50 amid the early Wednesday morning in Asia. In doing so, the yen pair registers four-day losing streak amid the Constitution Day holiday in Japan.
Mixed play of risks…
While upbeat comments from the US keep the risks lighter, downbeat activity numbers across the globe, mainly due to the coronavirus (COVID-19) weigh on the market’s mood.
Recently, US President Donald Trump cited the closing of the Coronavirus Task Force team while concentrating on the economy’s restart. Earlier during the week, Governors of California and New York also came forward to push the hopes of the restart.
On the contrary, disappointing activity numbers from the US, the UK and Europe are weighing on the pair and the market’s trading sentiment.
As portraying the mixed mood, Wall Street closed a little positive on Tuesday whereas S&P 500 Futures flash 0.10% gains to 2,862 by the press time.
Given the absence of Japanese traders, as well as no major data from elsewhere in Asia, USD/JPY may rely on the virus updates and US-China tension stories for immediate direction.
Technical analysis
A monthly falling trend line near 107.15 becomes near-term key resistance ahead of the late-April top near 107.50. Alternatively, the previous month low around 106.35 acts as the immediate support ahead of March 10 top near 105.90.
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