The USD/JPY currency pair made its lowest daily close in over 7 months yesterday, giving bears a statistical edge. Technically, the break below long-term support at 104.37 was an important bearish sign that lower prices are likely. The multi-month low price is at 104.00.
Global stock markets fell again yesterday, as markets digest the fact that further economically damaging lockdowns may be imposed in several European nations as new confirmed coronavirus cases hit all-time highs. The situation in especially serious in France and Spain, both of which have now recorded more than 1 million confirmed coronavirus cases. We have begun to see a negative impact on the Euro.
It seems extremely unlikely there will be a stimulus deal agreement between the Trump administration and the U.S. Congress before the U.S. election on 3rd November. Analysts and central bankers tend to see this step as vital for the U.S. and global economy.
