Tuesday’s trading session of USD/JPY has resulted in a slight fall, as we continue to see a lot of noise. With that in mind, it is only a matter of time before markets roll again because USD must find a way to deal with the influx of newly printed dollars by the Federal Reserve. Therefore, a quick solution for USD foes are in sight. However, there are fundamental reasons to believe that USD/JPY could continue to drop. Covid numbers in the States continue to climb and if the market continues to pay attention to these numbers, naturally traders will continue to sell off the US dollar.
The British pound has rallied significantly on Tuesday, even reached the highs from last week. However, it could not break through. Now, it is only a matter of time before buyers start to act and try to capitalize on the inevitable slight market dip. But we need to keep in mind that 1.3 level will serve as a big support. Most likely, long term, the asset will act indecisively and move back and forth before gathering up momentum. Also, in case the United States manages to figure out USD woes, then it is expected for GBP/USD to become very desirable for sellers and bearish trend will not be surprising.