The US dollar's decline against the Japanese yen continues in 2021, despite the dollar’s gains against the rest of the other major currencies.
The most active trading sessions for the USD/JPY take place in Tokyo, London and New York. Day traders look mostly to the London and New York sessions but those trading wishing to trade on the Asian markets can do so between 2400 GMT - 0900 GMT.
USD/JPY has traditionally been the most politically sensitive currency pair, with successive U.S. governments using the exchange rate as a lever in trade negotiations with Japan. For day-to-day trading, the most significant feature of USD/JPY is the heavy influence exerted by Japanese institutional investors and asset managers.
The USD/JPY has recently dipped below 101.00. Read the Daily Forex USD to Japanese Yen forecast and get access to the most up-to-date statistics, analyses and economic events regarding the USD/JPY.
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The global recession caused by COVID-19 saw the bolstering of save-haven currencies, the most prominent of which was the USD.
The USD/JPY is about to close 2020 trading on a sharp decline, stable below the psychological support level at 103.00.
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After five trading sessions in a row, during which the USD/JPY tried to bounce back up, the pair resumed its downward movement and stabilized around the 103.33 support.
Amid expectations of low volume and short-term fluctuation, the USD/JPY continued in limited ranges and the pair stabilized around the 103.65 level as of this writing.
The USD/JPY's performance will likely continue to falter throughout the last trading hours of 2020 in a bullish correction.
Since the beginning of this week's trading, the USD/JPY bullish rebound attempts have been weak.
Clearly, the USD/JPY performance is determined to end the 2020 trading year on a bearish note.
Today and tomorrow are the most important days of this week for the remainder of 2020 trading, with the anticipation of the release of economic data.
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A new, more contagious strain of the coronavirus and new restrictions on global economic activities ahead of the holiday season led to new investor flight from risk and the beginning of new gains for safe havens.
The US dollar initially tried to rally against the Japanese yen, but pulled back to give up about half of the gains.
The USD collapse continued amid the weak performance of the US economy, the stumbling of stimulus negotiations and the wave of risk appetite that dominates global financial markets with the beginning of COVID-19 vaccinations.
The USD/JPY is stabilizing under downward pressures that pushed the pair towards the 103.68 support at the time of this writing.
The US dollar initially tried to rally during the trading session on Wednesday, but then fell hard as we try to crash through the support level that has been so important for the last several weeks.
Despite official US approval for distribution of the Pfizer vaccine, the USD/JPY continued its downward path at the beginning of this week's trading.