Japan PM Abe officially declares state of emergency in seven prefectures

Dhwani Mehta FXStreet

As highly anticipated, Japanese Prime Minister (PM) Shinzo Abe officially declares a state of emergency in seven prefectures, Reuters reports.

Key takeaways

The state of emergency will last up to a month and will apply to the prefectures of Tokyo, Osaka, Chiba, Kanagawa, Hyogo, Saitama and Fukuoka.

Government will withdraw the order as soon as it is clear that people's lives are no longer in danger or if the measures are no longer needed.

USD/JPY reaction

USD/JPY remains trapped in a 20-pips range in the European session so far this Tuesday, with the upside attempts capped just shy of the 109 level while the bulls continue to guard the 108.80 region.

The yen stands resilient to the state of emergency declaration, which is likely to have a major economic fallout, as the government battles to contain the virus spread.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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