Alternating risk appetite trends fail to sustain extra gains in USD/JPY, which remain so far limited around the 106.10/15 band, or 3-week peaks, recorded earlier on Thursday. All in all, FXStreet’s Pablo Piovano targets the 106.50 area.
Key quotes
“The risk complex stays cautious (disappointed?) after President Trump postponed any debate on extra fiscal stimulus to any moment past the November elections, leaving the ongoing recovery, the unremitting advance of the pandemic and extra-political effervescence as key drivers for the price action in USD/JPY.”
“In the short-term horizon, USD/JPY should clear the 100-day SMA in the key 106.50 level to allow for a move to the August’s peak in the 107.00 neighbourhood, all ahead of the critical 200-day SMA, today at 107.46.”
“On the downside, initial contention emerges at the so far monthly lows just below 105.00 the figure. A deeper pullback carries the potential to test the 104.00 zone (September 21).”
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