Still no way through below 107.00 for USD/JPY
The pair is largely consolidating around 107.20-30 after yet another failed attempt to try and break below the 107.00 level in overnight trading.
Price action has been largely ranging around 107.30 to 108.00 over the past week or so but yesterday we saw sellers try and drive a move towards 107.00 amid a weaker dollar.
However, the figure level held up and that continues to put the pair in a bit of limbo. If anything, the price action in the pair is but a reflection of the market mood right now.
Sure, there are hints of cautious optimism over the past few sessions but there is still a lot to digest. We are seeing some better signs of virus developments in some parts of Europe as well as Australia and NZ, but what are there risks of a secondary outbreak?
How long will economic and financial conditions remain this subdued? Is the historic crash in oil last week a one-off event? How are countries going to begin reopening borders?
There are still plenty of questions that need to be answered in the sessions ahead.
Back to USD/JPY, price action is still settling under the key hourly moving averages and that puts sellers in near-term control. However, the inability to break below 107.00 remains frustrating and that is the key line in the sand for any downside move now.
