USD / JPY Analysis

USD / JPY Analysis

- USD / JPY remained under sharp selling pressure on Monday's third session. - Concerns about rising coronavirus cases have weighed down on the US dollar and continued to exert pressure. - The deterioration of US-China relations benefited from the safe-haven JPY and further increased sales bias. The USD / JPY parity has remained intense during the European session and has reached its lowest level since mid-March, dropping to the mid 105.00s. It is stated that the bearish trend of the parity has reached below 106.65-60 horizontal support and witnessed aggressive sales in the third consecutive session on Monday. The decline also marked the fourth day of a negative move over the past five years and was supported by the ongoing trend of selling around the US dollar. The US dollar started the week with a pessimistic mood that it was worried about as the rise in coronavirus cases could reduce the recovery in the world's largest economy. This fueled the Fed's speculation that it would continue to add stimuli for a longer time and larger amounts. In addition to these key factors, the ongoing decline may also be attributed to some technical follow-up sales below the 106.00 level. Meanwhile, the oscillators still stand above the oversold area and probably support hopes for a further decline to challenge the 105.00 psychological mark. Market experts are waiting for the U.S. economic document, recommending that Durable Goods Orders be announced during the North American session. The data may affect the USD price dynamics, which will be looked at for some meaningful trading opportunities, with a wider sense of market risk.