USD/JPY: Stubborn support at 103.95 limits the downside

After peaking at 104.64, USD/JPY retreated as the dollar resumed its decline this Tuesday. The pair is trading around 104.30, and the short-term picture is neutral-to-bullish, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“In the US, several states have begun certifying results from the presidential election, and despite President Donald Trump´s insistence on his legal battle, he authorized the beginning of the transition with Joe Biden’s staff. The news brought some relief to US markets.”

“The 4-hour chart shows that dollar/yen is below a mildly bearish 100 SMA, while the 20 SMA advances below the current level. Technical indicators eased from intraday highs but pared their declines within positive levels and are slowly turning higher, indicating little interest for the safe-haven yen.”

“The USD/JPY pair could turn bearish on a break below 103.95, a strong static support level.”