Japanese Yen Fails to Close above 104.95

Looking at the Japanese yen (JPY) on the above hourly USD/JPY MT 4 price chart, this Forex market was unable to close above 104.95 yen on Monday. This sent the USD/JPY currency exchange rate lower as it lost ground and remains under pressure during today’s early Asian trade session.

The economic calendar is quiet today. Japan has no macroeconomic data releases today or tomorrow. The world’s largest economy, the United States, will release their monthly core and headline durable goods orders as well as their monthly CB consumer confidence index.

The United States Senate has just confirmed Judge Amy Coney Barrett to the land’s highest court. This is the U.S. Supreme Court and a lifetime appointment. The European Union, including member states and the Eurozone have no economic data releases. The United Kingdom is also void of economic data events as is Canada and Switzerland.

With little economic data on the calendar, coronavirus (covid-19) headlines will pay a roll in price action. European nations are seeing sharp spike in new cases and stepping up efforts to contain the second wave of the global pandemic. So has the United States.

Daily Japanese Yen Technical Analysis (USD/JPY)           

Looking at the USD/JPY hourly price chart above, the Japanese yen remains in control against the almighty U.S. dollar (USD). This is sending this currency exchange rate lower.

With that said, the Japanese yen notes the first layer of technical support in play at 104.75 yen. The next layer of technical support lines up at key psychological level of 104 yen.

Looking at the technical indicators, the relative strength index (RSI) is trending lower around 39.85. There is a downside barrier at 104.80 yen that should be watched. This is where the one hundred and fifty (100, 50) hour simple moving averages come together for a confluence area.

The first upside barrier to watch comes into play at the 21 hour simple moving average. This upside barrier lines up at 104.88 yen.