USD/JPY remains under mild-pressure this Tuesday, as the market’s mood is sour, and was last seen trading in the 104.60 price zone. The pair is technically bearish in the near-term, poised to challenge the monthly low at 104.33, FXStreet’s Chief Analyst Valeria Bednarik reports.
“The looming US election, resurgent cases of coronavirus in Europe and the US and no progress in a US stimulus package are behind the investors’ apathy. The next week will be critical in terms of events and data. Meanwhile, equities trade in the red, extending their latest declines. US Treasury yields are also lower, in line with the USD/JPY slide.”
“USD/JPY seems poised to extend its decline, as it is trading near its monthly low at 104.33. The pair has slid below its 20 SMA, which is currently directionless around 104.75, while the larger moving averages maintain their bearish slopes far above the shorter one. Technical indicators, in the meantime, head lower, the Momentum within neutral levels but the RSI accelerating lower at around 38, favoring a downward extension for the upcoming hours.”