A combination of factors prompted some fresh selling around USD/JPY on Tuesday. The prevalent bearish sentiment around the USD was seen exerting some pressure. A cautious mood benefitted the safe-haven JPY and contributed to the selling bias. The USD selling bias remained unabated through the mid-European session and dragged the USD/JPY pair further below the 103.00 mark. The pair was last seen trading around the 102.85 region, down around 0.25% for the day. The pair failed to capitalize on the previous day’s modest rebound from multi-month lows, instead met with some fresh supply on Tuesday and was being pressured by a combination of factors. The US dollar remained depressed near two-and-half-year lows amid the likelihood of more US financial aid package and expectations that the Fed will keep interest rates lower for a longer period. Meanwhile, uncertainty about the US Senate runoffs in Georgia tempered the recent market enthusiasm. This, in turn, benefitted the safe-haven Japanese yen and exerted some additional downward pressure on the USD/JPY pair. The outcome of two Senate seats will have an impact on the incoming President Joe Biden’s ability to pursue his preferred economic policies, including boosting stimulus. According to economists at TD Securities, the USD could see further downside momentum should the Democrats flip both Georgia seats. “Republicans need to win just one of the two GA contests on Tuesday to remain the majority party in the Senate, but polls have been moving in favor of the Democrats and betting odds have tightened. The Ossoff-Perdue race is expected to be the tighter of the two.” In the meantime, traders are likely to take cues from the US economic docket – highlighting the release of ISM Manufacturing PMI. Apart from this, developments surrounding the coronavirus saga might continue to drive the broader market risk sentiment. This, in turn, might influence the safe-haven demand for the JPY and assist investors to grab some short-term trading opportunities. Technical levels to watch FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD Price Analysis: Door open for the continuation of the uptrend FX Street 1 year A combination of factors prompted some fresh selling around USD/JPY on Tuesday. The prevalent bearish sentiment around the USD was seen exerting some pressure. A cautious mood benefitted the safe-haven JPY and contributed to the selling bias. The USD selling bias remained unabated through the mid-European session and dragged the USD/JPY pair further below the 103.00 mark. The pair was last seen trading around the 102.85 region, down around 0.25% for the day. The pair failed to capitalize on the previous day's modest rebound from multi-month lows, instead met with some fresh supply on Tuesday and was being pressured by… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.