Amid broad US dollar sell-off, USD/JPY drops back below 110.00
The US currency gets sold-off along with the US 10-year Treasury yields, as risk-off is back in vogue following the US Senate’s failure to advance the coronavirus rescue package bill.
The USD/JPY pair retains its bullish stance despite retreating ahead of the close, given that, in the daily chart, it closed the week well above all of its moving averages, while technical indicators consolidate at weekly highs well above their midlines. In the 4-hour chart, it continues to develop above all of its moving averages, with the 20 DMA advancing above the larger ones. Technical indicators have lost their bullish momentum but hold near overbought levels. A break through the mentioned high favors an upward extension toward 112.22, February monthly high.