USD/JPY rebounds after sharp fall to 101 area, steadies near 102.30
|- S&P 500 drops 7% after opening bell to trigger circuit breaker.
- US 10-year Treasury bond yield is still down more than 30%.
- US Dollar Index struggles to hold above 95.
The USD/JPY pair erased more than 400 pips on Monday and touched its lowest level since September 2016 at 101.18 in the early trading hours of the American session before erasing a portion of its losses. As of writing, the pair was still down 2.9% on the day at 102.30.
Risk-off flows continue to dominate financial markets
The intense flight-to-safety at the start of the week amid heightened concerns over a protracted negative impact of the coronavirus outbreak on the global economy and the beginning of an oil price war allowed the JPY to find demand as a safe-haven. Mirroring the market panic, the 10-year US Treasury bond yield erased more than 40% at one point to register a new all-time low at 0.36%.
Moreover, the S&P 500 lost 7% minutes after the opening bell to trigger a circuit breaker. Although Wall Street's main indexes pulled away from lows after trading resumed following a 15-minute break, they are still down between 4.6% and 5.7% on the day.
In the meantime, the greenback continues to suffer heavy losses against its major rivals to force the pair to remain deep in the negative territory. At the moment, the US Dollar Index is down 1.2% on the day at 94.95.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.