- USD/JPY drops over 20 pips in Asia to test Wednesday’s low.
- Disappointing US jobs data and dovish Fed minutes weigh over the dollar.
USD/JPY is feeling the pull of gravity with the dollar drawing offers, possibly on disappointing US data released Wednesday.
The pair is currently trading in the red at 104.30, having tested Wednesday’s low of 104.25 soon before press time.
The US Labor Department’s weekly jobless claims released Wednesday showed that the resurgence of coronavirus is boosting layoffs and undermining the labor market recovery. Another setup of data showed the US Personal Income fell in October while spending ticked higher.
Meanwhile, minutes from the US Federal Reserve’s (Fed) last policy meeting showed officials were worried that the economy was on a course for a renewed slowdown with Congress struggling to approve additional fiscal stimulus amid the rising number of coronavirus cases.
As such, the greenback is on the offer. The safe-haven currency could continue to lose ground in the near-term on heightened prospects of additional monetary easing by the Fed and expectations for a swift economic recovery on potential coronavirus vaccines.
Technical levels
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