USD/JPY: Bearish bias while below 105.10

The USD/JPY pair remains lifeless around 104.00, neutral in the near-term, but the bearish mid-term case is firmly in place, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Investors´ anxiety results from Brexit jitters and resurgent coronavirus cases, resulting in massive lockdowns in the northern hemisphere. London, Germany and the Netherlands were the latest to announce tight measures, while New York Mayor Bill de Blasio warned that the city needs to prepare for a full shutdown, as the number of hospitalizations keeps growing.”

“In the wider perspective, the risk is skewed to the downside, as the USD/JPY pair continues to trade well below a long-term descendant trend line coming from March’s high, currently around 105.10.”