USD / JPY Weekly Outlook: Pandemic Fears have Resurfaced, But US Elections will Affect Markets

The safe-haven trading of the Japanese yen has been the dominant corridor in USD / JPY this week. A return to partial closings in France and Germany and a surge in COVID-19 diagnoses in the US has caused the US dollar to become a weapon across most currency pairs. However, for the USD / JPY markets, they balanced trading without the risk of competition and the pair ended the week at roughly the same place it started. The five-week low of 104.03 on Thursday was just a touch of the strongest remaining support line, and Friday's rebound consolidated its immediate significance.