Data Ignored, Weaker US Dollar Keeps Pair On Recent Lows

USD/JPY flat on the session in Asia, but holding losses made on Tuesday. The pair last at 103.66, off lows of 103.58 hit earlier in Asia. The weaker US dollar was the main driver as it touched a two year low as hopes for a stimulus package increased after Senate Majority Leader McConnell acknowledged Biden as the President-elect and said the Senate would not adjourn for the year without a relief package.

• Data earlier in the session showed that exports fell more than forecast at -4.2% against an expectation of +0.4%, imports also fell more than expected at -11.1% compared to -9.5% expected. The data was ignored despite the negative implications of weaker global economy (lower exports) and weak domestic demand (lower imports).
• Monday's move below 103.65, Nov 18 low signalled scope for a deeper pullback however, to strengthen this possibility, price needs to clear 105.51. A break would reinstate an intraday bearish risk and set the scene for a test of key support at 103.18, Nov 6 low. On the upside, key S/T resistance resides at 104.76, Nov 4 high. Clearance would open 105.68, Nov 11 high.