USD/JPY: Rises for third day on Biden transition news, eyes BOJ’s Kuroda

USD/JPY refreshes intraday high to 104.61 as markets in Tokyo open for Tuesday’s trading. The pair recently picked up bids after US President Donald T  |  24/11/2020 00:20
  • USD/JPY trims early-Asian losses as Tokyo open welcomes the risk-on mood.
  • Trump concedes defeat, ex-Fed Chair Yellen likely be the next Treasury Secretary.
  • Vaccine hopes, stimulus expectations and Brexit optimism favor bulls.

USD/JPY refreshes intraday high to 104.61 as markets in Tokyo open for Tuesday’s trading. The pair recently picked up bids after US President Donald Trump ordered General Services Administration (GSA) to formally begin the power-shift process to President-elect Joe Biden. It’s worth mentioning that the pair marked the heaviest gains in two weeks the previous day after the US dollar rose across the board on upbeat PMI data.

In addition to Biden’s White House entry, markets also cheer increasing odds of Janet Yellen’s selection as the next Treasury Secretary. The ex-Fed Chair managed to defy the slowdown crisis when in command.

Elsewhere, news from Sankei suggests Japan’s third stimulus could be 20 trillion yen while the coronavirus (COVID-19) resurgence in Tokyo pushes the Asian major’s government towards suspending the “Go To Travel” subsidy program. As per the latest data, Tokyo’s covid tally rises to 37,708 active cases by the end of November 22.

Despite surging virus cases, progress in the COVID-19 vaccine and treatments has been keeping the traders hopeful to combat the virus sooner than later. The recent update indicates that the AstraZeneca-backed small dosage cure got a 90% effective rate.

On the separate fronts, the European Union (EU) and the UK policymakers are rushing for the Brexit deal and the US is up for challenging the China-backed trade group with its Western allies.

That said, Japan’s Nikkei 225 marks 1.90% gains during the initial hour of trading while S&P 500 Futures and the US 10-year Treasury yields also benefit from the latest risk-on mood.

Looking forward, comments from the BOJ Governor Haruhiko Kuroda could be eyed as immediate catalysts while risk headlines remain as the key drivers.

Technical analysis

A clear break of 21-day SMA, currently around 104.47, enables the USD/JPY buyers to eye 50-day SMA level near 105.00.

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com