USD/JPY to extend the rally towards the 104.70 area

The USD/JPY pair is up on broad dollar’s demand, approaching the 104.00 level, and could extend its gains to 104.70, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The sentiment soured amid UK-related news, as Brexit-talks remain in limbo, while the UK announced tougher levels of restrictions amid a new strain of coronavirus that seems to be much more contagious.”

“Stocks are in free-fall, while US Treasury yields are also in retreat-mode, despite US Congress reached an agreement on a $900 billion coronavirus relief package that should be voted this Monday.”

“The USD/JPY pair is bullish in the near-term and could extend the current rally towards the 104.70 price zone.”