USD/JPY extends drop under 103.00 as dollar eases further on the session


USD/JPY trades to its lowest levels since March last year

USD/JPY D1 04-01

The dollar isn’t getting much reprieve on the session as it continues to falter against the rest of the major currencies bloc in trading today. EUR/USD is testing 1.2300 again while USD/JPY has slipped by 0.5% to a low of 102.72.

Looking at the chart, the drop below the 17 December low now leaves little in the way of a push towards testing 102.00 next. The capitulation in the pair back in March last year failed to hold a daily close below the figure level, so that will be a key spot to watch.

As things stand, the market continues to keep a firm conviction on extended dollar weakness – carrying over the trend from the end of last year.

The Georgia runoffs tomorrow might offer something for investors to deal with in trading this week but otherwise, it seems like we’re going back to where we left off in 2020.

Elsewhere, the pound is also another currency that is underperforming today as we see EUR/GBP move back above its 200-day moving average and near 0.9000.

While a Brexit trade deal was struck, there is seemingly a lack of euphoria as the market remains unconvinced of the prospects of the UK economy amid the virus situation and the likelihood of further BOE easing later in the year.

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