USD/JPY craters amid coronavirus fears
|Another day, another massive selling occurred on the financial markets, and stock indices were down 2-3% around the globe, while the USDJPY pair fell 150 pips to trade near 108.00 during the US session.
The pair is now down more than 400 pips from its last week's highs, which is one of the most bearish moves in years. Additionally, stock markets are down +-15% on the week, which is the worst week since the financial crisis in 2008.
As the virus outbreak continues to worsen in Europe, Iran, Korea, and Japan, and it seems it's getting slightly better in China, the focus of investors and all the people is now on the situation outside of China. We will see how the situation develops over the weekend and if it gets worse, we could see another sizeable bearish gap on Monday.
The next support for the pair could be at today's lows, which coincides with January's lows (near 107.80). However, if this level gets breached to the downside, we could see a quick decline toward the 105.00 threshold.
On the upside, should the situation improve, the intraday resistance seems to be near 108.30 and afterward at around 108.80. Until then, the overall trend looks bearish.
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