- USD/JPY bleeding out and poised for further risk-off induced downside.
- 109.69 comes as an upside target which is required to ease the bearish threat.
USD/JPY is trading around the 108 handle between a range of 107.46 and 108.72, currently positioned at 107.68 and flat on the session in the final hour of trade on Wall Street, pressured as US stocks head towards a losing close for the session. The S&P 500 is -1.55 into the final minutes of trade.
The risk-on sentiment is shortlived in this day and age pertaining to the COVID-19 crisis that is sweeping throughout the world, crippling global trade and now tearing through third world nations, the first to really feel the economic devastation, despite being last to be coronavirus infected. There is a growing feeling of unease and a sense of panic on a global scale, not least pertaining to the virus but due mainly to the economic impact.
The bell curves may be a positive factor for, but it is severely outweighed by the prospects of a global recession and potential depression in many parts of the world, driving the Central American Bank for Economic Integration to scramble towards approving a $1.9 bln program to support regional efforts to contain coronavirus and to mitigate the economic impact.
USD/JPY downside exposed
Indeed, the yen is a favoured store of liquidity at times of such crisis, and with the US dollar a little loser, perhaps its time for a revisit to the downside on USD/JPY putting a recovery towards the Feb 20 high of 112.23 and 112.40, Apr 24th 2019 high back on ice? The scramble for dollars appears to have eased with the Fed's extraordinary measures helped to quench the market's thirst for dollars.
USD/JPY levels
The next support lies at 106.76, Mar 18 low and 106.45, 50.0% of the March 9-24 rally and a test with a close below of this area would set the scene for a deeper pullback.109.69 marks a key upside target which is required to ease the bearish threat.
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 stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.