USD/JPY to extend the slide on a break below 105.00

The USD/JPY pair waits for US data trading lower in range around 105.20 as demand for the greenback has somehow receded while a light of hope related to US fiscal stimulus keeps equities afloat, FXStreet’s Chief Analyst Valeria Bednarik reports.  

Key quotes

“Comments from US Senator McConnell on Thursday were a light of hope for markets, as he said that a fiscal stimulus package would be passed after the elections if a deal can’t be agreed these days.”

The focus in on US Retail Sales, foreseen up 0.7% in September, and the preliminary estimate of the Michigan Consumer Sentiment Index for October, expected at 80.5 from 80.4 in September.”

“The USD/JPY pair is at risk of extending its decline in the near-term but needs to clear the 105.00 support level. The 4-hour chart shows that the pair continues to trade below all of its moving averages, with the 20 SMA slowly grinding lower. Technical indicators in the mentioned time-frame remain within negative levels, although with limited bearish momentum.”