USD/JPY eyes the December low at 102.86

The USD/JPY pair trades around 103.05, down for the day as pressure on the greenback continues. The December low of 102.86 is in its sights, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“The focus remains on coronavirus, amid news indicating resurgent contagions and deaths, but also the beginning of immunization. Japan reported 3,476 new cases and 43 deaths in the last 24 hours, whit over 1,000 reported in Tokyo. The numbers are records for the country, and the government is studying restrictive measures.”

“Trading will likely come to a halt after the release of US Initial Jobless Claims for the week ended December 25, foreseen at 833K.”

“The 4-hour chart shows that the price remains well below bearish moving averages, with the 20 SMA currently around 103.50. Technical indicators remain near daily lows, with limited directional strength.”

“It seems unlikely, but the USD/JPY pair could extend its slump once below December’s low at 102.86.”