USDJPY jumps on vaccine progress

The long term trend remains bearish despite today's surge: Chart

Charts (6)

The US Dollar was bearish against most of its major pairs on Monday with the exception of the CHF, JPY and EUR. On the US economic data front, no major economic data was released. In other news, over the weekend Democratic Presidential nominee Joe Biden declared victory in the 2020 Presidential election.  

On Tuesday, the National Federation of Independent Business's Small Business Optimism Index for October is expected to increase to 104.2 on month, from 104.0 in September. Finally, the Bureau of Labor Statistics' Job Openings for September is expected to rise to 6,500 on month, compared to 6,493 in August.    

The Euro was bearish against most of its major pairs with the exception of the CHF and JPY. In Europe, The German Federal Statistical Office has posted September trade balance at 20.8 billion euros (vs 16 billion euros surplus expected). Separately, Europe Sentix Investor Confidence for November was released at -10, vs -15 expected and -8.3 in October. Also, Bank of France Industrial Sentiment for October was published at 97, vs 90 expected.

The Australian dollar was bullish against most of its major pairs with the exception of the NZD.

One of the most active pairs on Monday was the USD/JPY which jumped 201 pips amid a U.S. market rally on hopes of a coronavirus vaccine from Pfizer (PFE) and BioNTech SE (BNTX) after their vaccine trials were found to be more than 90% effective in preventing COVID-19 in participants without evidence of prior COVID-19 infection.

Looking at a chart of the USDJPY, The pair surged off of 103.18 support however price action remains contained inside a declining trend channel. Key resistance has been identified at the 106.10 level. A break above could have strong bullish implications. For now, the preference is to ride the trend lower ultimately reaching the 102 support level. 

Source: GAIN Capital, TradingView

Happy Trading

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account