- USD/JPY bucks the recent uptrend amid risk-off moves.
- Coronavirus updates concerning the US, Italy increase the fears.
- The US is expected to roll out a massive stimulus in response to the pandemic, no announcement is out till now.
USD/JPY snaps four-day winning streak while declining to 110.80 amid the initial minutes of Monday’s Asian session. The yen pair takes clues from the surge in coronavirus figures from the US and Italy. Also likely to exert downside pressure on the pair are comments from the Fed official and US President Donald Trump as well as an absence of the Trump administration’s much-awaited stimulus.
The worsening case in the US…
The US now has the third-highest numbers, after Italy and China, as far as the coronavirus (COVID-19) is concerned. While the cases neared 24,000 during the weekend, the death toll surged to 306 on Saturday.
The epidemic has already started weighing on the economics of the world leader and is likely to have a fierce impact while going forward. The St. Louis Federal Reserve President James Bullard expects the second quarter (Q2) GDP to shrink by 50% in addition to the surge in Unemployment Rate to 30% due to the current coronavirus pandemic.
US President Donald Trump refrains from any stimulus news while saying that the US is marshaling every resource available to fight the “Chinese virus”.
While the Fed has tried all it could do, also promised to stay ready for further moves, the Trump administration’s ‘massive’ economic response to the disease is still looming in the Senate. The package is anticipated to offer $3,000 to each of the families while also helping the Fed to infuse $4 trillion of liquidity into the markets.
On the positive side, 500,000 respirators are on the way to New York and Seattle, which in turn could defy the previous calls of the shortage of medical supplies.
That said, the market’s risk-tone remains heavy with the US 10-year treasury yields last losing 25 basis points (bps) to 0.885% on Friday whereas Wall Street also dropped during the late hours of the previous week.
Investors will now pay close attention to the Tokyo open as the Japanese traders enjoyed a long weekend due to Friday’s off.
Unless providing a daily closing below 108.55/50 horizontal support, the pair is well inclined to challenge the February month high near 112.20.
Additional important levels
|Today last price||110.8|
|Today Daily Change||-0.12|
|Today Daily Change %||-0.11%|
|Today daily open||110.92|
|Previous Daily High||111.51|
|Previous Daily Low||109.33|
|Previous Weekly High||111.51|
|Previous Weekly Low||105.15|
|Previous Monthly High||112.23|
|Previous Monthly Low||107.51|
|Daily Fibonacci 38.2%||110.68|
|Daily Fibonacci 61.8%||110.16|
|Daily Pivot Point S1||109.67|
|Daily Pivot Point S2||108.41|
|Daily Pivot Point S3||107.49|
|Daily Pivot Point R1||111.84|
|Daily Pivot Point R2||112.76|
|Daily Pivot Point R3||114.02|
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.