- Markets are stand-offish in the open this week, supporting a bid in the yen.
- USD/JPY is sliding from a high of 107.97 to 107.36 so far as COVID-19 continues to disturb investors.
The Japanese yen is firmer in Asia today, despite a bid in the US dollar, trading 0.46% higher vs the greenback with USD/JPY sliding from a high of 107.97 to a session low of 107.36 so far.
Friday was a risk-off session for markets in the US, with stocks down across the board. The Dow closed down 4.1% and the S&P500 off 3.4%, both falling at the end of the session. The markets are stand-offish in the open this week too, with it being month-end and saturated in COVID-19 fresh case and higher death tolls fro the weekend's news as the top US infectious disease expert, Anthony Fauci, and colleague, Dr. Deborah Brix, have agreed that the number of deaths from Covid-19 in the US could reach 200,000, while at the same time, a number of countries announced the tightening of social restrictions. More on this here: COVID-19 Significant Developments: US Task Force says US could face millions of infections
Stimulus and US economic data drivers
Markets are depending on the flow of stimulus from world governments and central banks and before the weekend, the US Federal Reserve said it would reduce its treasury bond-buying program from $75bn/day currently to $60bn/day on 2 April. The Federal Reserve will also be reducing its mortgage-back security purchases by $10bn to $40bn to try and calibrate its operations and remain flexible.
Meanwhile, while the US House passed the USD2trn support package, US data was back in focus last week following a terrible US jobless claims that rose by 3 million, affecting the final Michigan Consumer Sentiment survey for March which dropped to 89.1 (prelim 95.9, Feb: 101), with the largest monthly drop since October 2008. Note that the GFC lows was 55. We also had the US personal income in Feb beat estimates, rising +0.6%m/m (est. +0.4%), with both the core and headline PCE deflator rising to 1.8% (est. 1.7%). Robert Kaplan, President of Dallas Fed, argued that the unemployment rate could peak in the low to mid-teens, adding hat consumer behaviour could be different after this.
As for stimulus for Japan, PM Abe said on Saturday that the government will announce an extra budget within ten-days to fund a massive stimulus package, which will "provide a
concentrated, short-term boost in demand." At the same time, Abe refrained from declaring the state of emergency, but noted it will be good to remain prepared in case the spread of the disease accelerates sharply.
USD/JPY levels
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

EUR/USD jumps back above 1.1000 on renewed US Dollar sell-off
EUR/USD is posting sizeable gains above 1.1000 in early Europe on Monday. EU prepares for retaliatory tariffs and rekindles the global trade war and US recession fears, drowning the US Dollar again aross the board. Traders now look to the EU Sentix and Retail Sales data.

GBP/USD holds recovery gains above 1.2900 amid fresh US Dollar weakness
GBP/USD clings to recovery gains above 1.2900 in European trading on Monday. The pair capitalizes on renewed US Dollar weakness as risk sentiment takes a fresh hit, with European traders hitting their desks. Trump's tariffs-led US recession fears and dovish Fed bets keep the USD undermined.

Gold price rebounds swiftly from multi-week low; lacks follow-through
Gold price reverses an Asian session slide to over a three-week low, though it lacks follow-through. Recession fears continue to weigh on investor sentiment and benefit the safe-haven commodity. Bets for more aggressive Fed rate cuts undermine USD and also lend support to the XAU/USD pair.

Crypto market wipes out $1 billion in liquidation as Asian markets bleed red
The crypto markets continue to decline on Monday, with Bitcoin falling below $78,000. The Asian markets also traded in the red, with Japan’s stock market extending losses to 8.5%, its lowest level since October 2023.

Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.