USD / JPY Analysis

USD / JPY Analysis

The USD / JPY is trying to recover from the lowest 105.83 daily level, but the bulls are unable to show an upward trend due to the weak US dollar among their main rivals. Trade in European stocks, coupled with the drop in S&P 500 futures, also limits recovery efforts just above 106. The dollar has stopped its return, and the coronavirus not losing its effect continues to create a black cloud on expectations of economic recovery. Meanwhile, the upcoming U.S. fiscal stimulus deal keeps USD sellers alive, coupled with declining U.S. real returns. On the JPY side, yen traders are ignoring local macro news while receiving support from the recent comments from Haruhiko Kuroda, Governor of the Bank of Japan (BOJ). Kuroda said early Tuesday that BOJ may consider extending it to March 2021 for lending facilities aimed at channeling funds to companies hit by the coronavirus pandemic. In the middle of incentive expectations, sensitivity on global stocks will have a significant impact on USD / JPY.