USD/JPY STRUGGLES AROUND 108,00 LEVEL
The USD/JPY parity remained depressed through the morning on Wednesday and was last seen hovering around the 108.24 mark, just a few pips above weeks lows.
Rising the fears about another wave of coronavirus in some countries, limited investors’ movements. This is causing the make Japanese Yen to be safe-haven. USDJPY parity was on the lowest levels since last month during the Asian session.
Moreover, the USD struggled to capitalize on the previous day’s goodish rebound from 7 week lows amid reduced bets for an earlier than anticipated Fed lift-off. This can count for the another factor that contributed to the mildly offered tone surrounding the USD/JPY pair.
US Treasury bond yields can help a bit limit the downside for the USDJPY pair, not permanently but at least for now.
When looking from a technical perspective, the pair, has managed to defend the 38.2% Fibonacci level so far. From now on, waiting for some follow-through selling before positioning can be a better option.