USD/JPY: Bearish pressure to increase on a break below 103.50

Risk aversion maintains the dollar bid across the board, although in the case of USD/JPY the balance continues. The pair trades around 103.70, unable to attract investors, and is at risk of resuming its slump once below 103.50, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Easing US Treasury yields and the poor performance of equities cap the advance. Upbeat Chinese GDP, on the other hand, partially offsets the dismal mood seen at the end of last week. The country reported a 6.5% growth rate in the last quarter of 2020.”

“Bears will likely take over on a break below 103.50, the immediate support level.”