Weekly Market Update Instrument (03/12/2021): USD/JPY

 Weekly Market Update Instrument (03/12/2021): USD/JPY

Weekly Market Update Instrument (03/12/2021): USD/JPY.

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Fundamental:

Highlighted in blue, on the daily feature, are the movements we have experienced this week. USD/JPY was an interesting instrument this week as it resembled the strength of correlation between the Dollar being a safe haven compared to the Yen being a safe haven. At the beginning of the week, we saw the Yen strengthen against the dollar as the market was digesting fears of the new Omicron Covid variant – which sent shockwaves through the markets on Friday of last week (26/11).

Moving towards the middle of the week were announcements that the FED wants to begin asset tapering much sooner than expected, allowing some improvement in the dollar as it provided slightly more ‘risk on’ sentiment.

All attention is focussed towards NFP today – which is likely to provide the market with some clarity on employment, unemployment and ultimately the overall recovery of the US economy.

Technical:

USD/JPY, as mentioned above, has been showing some resilience against the dollar, increasing from around 113.900 to 112.530 within four days. Recovering slightly on Thursday on the back of the information released regarding asset tapering. Overall, the market is still up trending and, as always, the dollar shows signs of strength.

Traders are awaiting confirmation from NFP for the direction one can expect medium term to long term.

**Disclaimer: This cannot to be construed as advice, it has been compiled purely as a guideline to responsible trading. Trade responsibly as your capital is at risk**

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