USD / JPY Analysis

USD / JPY Analysis

-USD / JPY found support ahead of the 105.00 level. Good purchases in USD demand / US bond yields continued to support the positive movement. The USD / JPY pair continued moderate rebounds in the European session, and recently hovered above the mid-105.00s, near the daily peaks. The pair managed to find some support in front of the psychological level 105.00, and for now, it seems to have reduced its last bearish trend to its lowest level in 4 - 1/2 months. This increase marked the first day of a positive move in the previous four sessions and supported the rise in the dollar from the lowest levels of nearly two years. U.S. politicians' approach to the next fiscal stimulus package helped the USD recover in the first half of Tuesday's trading day. Bull traders took advantage of a strong recovery in U.S. Treasury bill returns, but Fed's expectations seem to increase earnings. Investors are concerned that the steady increase in coronavirus cases could undermine economic recovery, which fuels the Fed's more stimulating speculations. This situation, coupled with concerns about worsening US-China relations, could support the Japanese yen at the safe haven.