The USD has become soft. What's the tactical outlook against its main counterparts?
USD/JPY: on the way to September lows
Information is not investment advice
USD/JPY now trades between 104.80 and 105.00. Further below, there are only September lows. The closest one is 104.5 – if the currency pair reaches there, that would be half-way to the bottom of the large downward channel. 104.00 would be the true support to look for – that’s where USD/JPY would likely stop and reverse to start crossing the channel upwards.
On the weekly chart, the market channel is in fact entering the zone of pre-virus lows. 104.00 would be a door into this lower layer, 102.00 would be the February-March lows. It’s pretty early to make preparation for the latter, but keep it in mind though: USD/JPY is now getting as low as ever in 2020.
Asia-Pacific stocks lacked firm direction as momentum faded from the record-setting performance on Wall St, where the S&P 500 and Nasdaq printed fresh all-time highs
Fed's Powell said a slowing recovery and a surging pandemic meant the US was entering a "challenging" few months, with the potential deployment of a vaccine still facing hurdles.