USD/JPY hits fresh one-week lows near 104.00

• Yen holds onto gains across the board.
• USD/JPY heads for the fourth consecutive daily decline.

The USD/JPY is falling on Tuesday for the fourth consecutive day, and it bottomed at 104.04, the lowest level in a week. The Japanese currency is among the top performers.

The decline in stock markets boosted the yen. At the same time, higher US yields failed to provide support to the dollar. Economic data from the US did not help the greenback. Retail sales rose 0.3% in October, below the 0.5% expected and September’s numbers were revised lower. Industrial Production climbed 1.1% slightly above the 1.0% expected.

After a mixed opening in Wall Street, stocks turned lower as restrictions across the United States offset the optimism from the vaccine. Also talks about fiscal stimulus are resuming in the US.

Technical outlook

The USD/JPY continues to move with a bearish bias. Only a close above 105.80 would negate the current outlook suggesting more gains or a consolidation at higher levels.

On the downside, the key strong barrier ahead is the 104.00 area. A break lower could trigger more volatility, exposing the November low at 103.13.

Technical levels