USD/JPY bears defending resistance territories as dollar falters
- USD/JPY bears remain on top as dollar struggles to come up and stay up for air.
- COVID-19 spread is concerning investors as stocks falter from record highs on vaccine news.
USD/JPY is currently trading at 104.19 and down some 0.36% into the final hour on Wall Street as investors weigh the spread of the coronavirus.
USD/JPY has travelled between a low of 104.07 and a high of 104.60 on the day in what has been a rather Markets subdued session in New York.
However, the reality of rising COVID cases has played on risk appetite despite the prospects of the vaccine being distributed sooner than first anticipated earlier this year.
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There is a keen focus on US data considering the spread of the virus and an elusive fiscal stimulus package agreement from Congress.
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US data disappoints
Data overnight showed US consumer confidence is waning and Retail Sales pointed to less spending.
In a warning of things to come, the data on Tuesday showed Retail Sales increased less than forecast in October, with the potential for even further slowing for November and December, spelling out tougher periods for US businesses.
October US retail sales rose 0.3% month-on-month versus 0.5% expected while September was revised down to 1.6% from 1.9%.
''The data was considerably weaker than expected and well down on the 1.6% recorded in September. Sales of vehicles and petrol were weak and the rate of sales fell for furniture, food & beverage, and clothing. Retail inventories aside from autos lifted 1.1%''.
Overall, this is a clear sign consumers are tightening their belts and the US economy would benefit from fiscal stimulus,'' analysts at ANZ bank explained.
At the time of writing, the S&P 500 was off 0.55% and the yield on the US 10-year yields are down 4.52%.