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

USD/JPY

Overview
Today last price 109.7
Today Daily Change -0.37
Today Daily Change % -0.34
Today daily open 110.07
 
Trends
Daily SMA20 109.53
Daily SMA50 109.3
Daily SMA100 108.9
Daily SMA200 108.38
 
Levels
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

 

 

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

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!
   

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD failed to recover above 1.2100

The shared currency remains under selling pressure against its American rival, trading in the 1.2080 area. Market players waiting for more hints in the form of April Retail Sales.

EUR/USD News

GBP/USD under pressure below 1.4050 amid renewed USD demand

GBP/USD trades pressured below 1.4050, as the US dollar remains broadly bid amid risk-off sentiment. Rising inflationary pressures and Brexit jitters over NI keep investors on the edge. Bailey's speech, US data in focus.

GBP/USD News

XAU/USD respects the 10-day EMA

Gold could be on the verge of a lower low, but the hourly time frame is key. The hourly support structure is guarding a break to test bullish commitments at 1,800. The 10-day EMA and confluence of the 50% mean reversion are also offering support. Gold Weekly Forecast: XAU/USD could target 200-day SMA

Gold News

Yearn Finance Price Forecast: YFI eyes consolidation after quick surge

Yearn Finance price tagged the channel’s upper trend line yesterday, falling just short of $100,000 and 261.8% Fibonacci extension target at $102,900. The sharp reversal from the trend line marks a significant turning point for YFI that will shift price action to consolidation from the uptrend beginning at the April 25 low. 

Read more

US markets lead the recovery as jobless claims decline

Ongoing inflation fears remain, yet improved jobless claims help lift spirits in the US. Meanwhile, UK reopening stocks have been dealt a blow after SAGE claimed that a rise in the Indian Covid strain could slow the pace of lockdown easing. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures