USD Bid Pushes Cross Higher

USD/JPY has gained in Asia trade on Monday, the pair last up around 19 pips at 104.13. After opening lower USD/JPY saw a tight range early in the session, but moved higher after USD caught a bid on some comments from US House Speaker Pelosi that the House would bring impeachment proceedings against outgoing US President Trump this week.

• Trading action in the pair has also been influenced by the discovery of a coronavirus variant similar to the UK strain was found in passengers arriving from Brazil, JPY initially strengthened on the reports.
• Japanese markets are shut for Coming of Age day which is likely to reduce liquidity and could exacerbate market moves.
• USDJPY rallied later in the week to extend the recovery of Wednesday's 102.59 low. A break and close above 104.00 would strengthen S/T bullish conditions and signal scope for stronger rally. This would open 104.13 and 104.45. The former is a Fibonacci retracement and the latter, the top of a bear channel drawn of the Mar 24 high. A channel break out would signal a reversal. On the downside, 102.59 is the bear trigger