USD/JPY drops below 109.00 even as Asian equities rise

  • The dollar continues to lose ground on the US fiscal stimulus. 
  • USD/JPY is trading below key average despite gains in the Asian equities. 
  • The S&P 500 futures, however, are flashing red and calling caution on the part of the USD/JPY bears. 

The US dollar is extending Thursday's decline in Asia, pushing USD/JPY to session lows near 108.50 amid a stimulus-driven uptick in the Asian stock markets.

Below 100-day MA

The pair faced rejection at 109.72 in early Asia and fell below the 100-day average support at 109.00 a few minutes before press time to hit a session low of 108.55.

Meanwhile, major Asian equity indices like Japan's Nikkei, Hong Kong's Hang Seng and South Korea's Kospi are flashing green.

The decline is not so much due to Yen demand but looks to have been fueled by the broad-based losses in the US dollar. The dollar index, which tracks the value of the greenback against majors, is currently trading at weekly lows near 99.30, having declined by nearly 200 pips on Thursday.

The dollar is being offered likely due to the unprecedented fiscal and monetary stimulus unveiled by the US government and the Federal Reserve in the last five days.

That said, the market sentiment remains fragile with the S&P 500 futures currently reporting over a 1% decline on the day. If the risk aversion worsens, the US dollar could again find haven bids, yielding a bounce in USD/JPY. The coronavirus outbreak is showing no signs of slowing down. Further, Thursday's US initial jobless claims showed the pandemic is causing greater damage than previously expected. So, another round of risk-off cannot be ruled out.

While the Japanese yen is a classic haven asset, during times of crisis markets trend to treat the US dollar as an anti-risk currency. The dollar index rose sharply from 94.65 to 103.00 in the 10 days to March 19, as the crash in the equity markets triggered margin calls and liquidity crises, forcing investors to seek safety in the US dollar.

Technical levels


Today last price 108.58
Today Daily Change -1.04
Today Daily Change % -0.95
Today daily open 109.62
Daily SMA20 107.71
Daily SMA50 109
Daily SMA100 109.04
Daily SMA200 108.33
Previous Daily High 111.3
Previous Daily Low 109.21
Previous Weekly High 111.51
Previous Weekly Low 105.15
Previous Monthly High 112.23
Previous Monthly Low 107.51
Daily Fibonacci 38.2% 110.01
Daily Fibonacci 61.8% 110.5
Daily Pivot Point S1 108.78
Daily Pivot Point S2 107.95
Daily Pivot Point S3 106.69
Daily Pivot Point R1 110.87
Daily Pivot Point R2 112.13
Daily Pivot Point R3 112.97



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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

AUD/USD drops back towards 0.6200 on RBA's FSR

Australian dollar ran through fresh offers on the RBA’s Financial Stability Review (FSR), as it highlighted the elevated risks to the economy due to the coronavirus outbreak. AUD/USD drops sharply towards 0.6200, having faced rejection near 0.6250. 


USD/JPY holds in neutral territory awaiting Fed's Powell

USD/JPY has been holding in consolidation and ranged sideways between 108.60 and 109.10 overnight. Fed's Powell and US jobs will be the final scheduled catalysts for the holiday-shortened week.


WTI: On the front foot above weekly resistance-turned-support

WTI nears the weekly top after breaking the short-term resistance line, now support. A sustained run-up could aim to fill the March month’s gap. 50% Fibonacci retracement, 200-HMA restrict near-term declines.

Oil News

Gold is consolidated in the $1640s in wind-down markets ahead of Fed's Powell

The markets are quieter in Asia following a strong performance on Wall Street with US stocks bouncing back from the prior session's lows. Gold has moved into consolidation between $1,647.60 and $1,650.

Gold News

What to expect from OPEC and G20

Equities and currencies traded higher today after Dr. Fauci, the US’ Director of National Institute of Allergy and Infectious Diseases said there could be a COVID-19 turnaround next week.

Read more