USDJPY plunges to 110.00 as virus outbreak is getting worse

Riskier assets experienced another wave of intense selling on Tuesday as equity benchmarks dropped 2-3%, and safe havens were bid (gold excluding). The USDJPY pair fell half a percent and was trading at around the psychological 110.00 level during the late US session.

The coronavirus spread seems to be out of control in Europe as Italian hospital failed to follow the necessary protocol, which led to the worst outbreak outside China so far. New cases are showing everywhere - Spain, Croatia, Austria, all linked to Northern Italy, where the outbreak began.

Sentiment appears very bearish, and unless the outbreak gets under control soon, we could see some considerable losses in the stock markets. The USDJPY pair might drop further if the significant support of 110.00 is taken out.

The next support could be found near 109.50/60, which might be hit very soon, considering the actual bearish pressure. Another buying zone might be located near 109.25 and then probably all the way nothing till 108.80.

On the upside, the intraday resistance should be at January highs of 110.30 and afterward at around 110.60.