USD/JPY testing 109 and with vigor as US stock future rise 3%
|- USD/JPY has spiked to the 109 handle as COVID-19 grips Japan.
- US S&P500 emini futures up around 3% and weighs on yen.
USD/JPY is trading at 108.99 at the time of writing, +0.55% having climbed from a low of 108.34 to a high of 108.99. The US dollar is firm in Asia today, albeit capped around 100.85 with a risk-on market as the yen drops with Japan moving to a state of emergency.
The Japnese yen has been sold-off across the board and is likely to struggle as Japan's COVID-19 cases spike. The Nikkei Asian Review reported that Japanese Prime Minister Shinzo Abe decided on Monday to declare a coronavirus emergency as new cases in the capital increase at a record pace. "The government will hold an unofficial meeting of a panel of experts and start preparing for the declaration."
Risk-on and Japanese sike in COVID-19 weighs on the yen
At the same time, we have seen equities extend their positive move today, with US S&P500 E-Mini futures up around 3% at the start of this week. Weekend news has shown some glimmers of hope with respect to COVID-19 and today's US Task Force presser provided some reassurance to US citizens that the optimists on the panel believe that there is a light at the end of the tunnel and that the peak is near. Headlines from the presser can be seen here: Trump: Hopes we're seeing levelling off of coronavirus in the hottest spots.
A focus on oil
Chart of the week: WTI bulls back in charge, taking on a 61.8% retracement
Meanwhile, there is a keen focus oil which surged on Friday, as US President Donald Trump’s tweeting of a 10mbpd cut was likely and “maybe substantially more”, along with the confirmation that an OPEC+ meeting would take place this week boosted sentiment. WTI closed up $6.8/ 32% although as given some of that back in the open today, -$2.20 at the time of writing.
USD/JPY levels
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