The market’s mood remains sour amid Brexit woes and Oxford announcing a pause in vaccine trials while the USD/JPY pair trades around the 106.00 where it left on Tuesday, still incapable of attracting speculative interest. Bears could have better chances on a break below 105.50, FXStreet’s Chief Analyst Valeria Bednarik reports.
Key quotes
“Financial markets are moving on sentiment, and a negative one, as tech shares extended their rout, dragging Wall Street sharply lower, while Brexit tensions mount. At the beginning of the day, AstraZeneca and the Oxford University announced they paused trials for its coronavirus vaccine amid ‘an unexplained illness’ in one participant, exacerbating the dismal mood.”
“USD/JPY is neutral-to-bearish according to intraday charts but within familiar levels. The 4-hour chart shows that the pair is hovering around mildly bearish 100 and 200 SMA, while below the 20 SMA. Technical indicators, in the meantime, have pared their declines, but remain within negative levels.”
“The USD/JPY pair has extended its weekly decline to 105.78, bouncing from the level. The bearish case will be limited as long as the pair holds above 105.50 a critical support level.”
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