USD/JPY extends slide to 109.70 amid risk aversion

  • Sharp increase in new coronavirus infections triggered flight-to-safety.
  • 10-year US Treasury bond yield erases more than 3% on Thursday.
  • US Dollar Index stays calm below 99 ahead of inflation data.

The USD/JPY pair failed to close the day above the critical 110 handle on Wednesday and came under renewed bearish pressure amid resurfacing concerns over the coronavirus outbreak. With risk-off flows helping the JPY find demand as a safe-haven, the pair slumped to a daily low of 109.61. As of writing, the pair was down 0.35% on the day at 109.70.

Coronavirus headlines weigh on sentiment

China has announced that the number of confirmed coronavirus infections rose more than 14K on Wednesday to bring the total number above 60,000. Although this huge jump in cases was reportedly caused by a change in the counting method, the market sentiment turned sour as investors realized that the severity of the outbreak was worse than initially anticipated.

"We understand that new case definition includes clinically diagnosed cases based on symptoms and exposure, as well as lab-confirmed cases," a spokesperson for the World Health Organization (WHO) explained on Thursday but failed to improve the sentiment.

Reflecting the risk-off atmosphere, the 10-year US Treasury bond yield is down 3.7% on the day and major European equity indexes are erasing more than 1%.

In the second half of the day, the US economic docket will feature the Consumer Price Index (CPI) and weekly Jobless Claims data. Markets are likely to keep a close eye on Wall Street's performance.

Technical levels to watch for


Today last price 109.7
Today Daily Change -0.37
Today Daily Change % -0.34
Today daily open 110.07
Daily SMA20 109.53
Daily SMA50 109.3
Daily SMA100 108.9
Daily SMA200 108.38
Previous Daily High 110.14
Previous Daily Low 109.77
Previous Weekly High 110.02
Previous Weekly Low 108.32
Previous Monthly High 110.29
Previous Monthly Low 107.65
Daily Fibonacci 38.2% 110
Daily Fibonacci 61.8% 109.91
Daily Pivot Point S1 109.85
Daily Pivot Point S2 109.63
Daily Pivot Point S3 109.48
Daily Pivot Point R1 110.22
Daily Pivot Point R2 110.36
Daily Pivot Point R3 110.58



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