USD/JPY pauses as markets collect themselves in a correction of a bear trend


  • USD/JPY holding up in bullish territories as US equities correct higher. 
  • COVID-19 traders are Long VIX, USD, gold and JPY.

USD/JPY has been trading in a phase of consolidation as markets soak-up the COVID-19 humanitarian and economic risks and the subsequent response from global leaders and central banks. At the time of writing, USD/JPY is trading a 111.17 between a range of 110.75 and 111.68, flat on the day as we head towards the final hour of Wall Street's trading. 

It has been a risk-on session in New York, with the US benchmarks responding in kind to the US Senate to vote on USD2trn rescue package which includes a USD600 lift in the average weekly initial claim. This has been taken as a positive outcome in markets following US Senate leaders reaching a deal with the White House. There will also be helicopter payments of $1,200 per adult and $500 per child for those earning under $75,000 –  US President Donald Trump wants the payments dispersed by 6 April.

Across the Atlantic, Europe is also continuing to build its armour. "EU leaders are reported to be in favour of allowing countries to tap the European Stability Mechanism (ESM), which would release around 2% of GDP. That could trigger the ability for targeted, unlimited bond-buying under its Outright Monetary Transactions (OMT). Leaders meet Thursday," analysts at ANZ Bank explained. 

Risk-off is hear to stay

Meanwhile, we are seeing the VIX higher by 1% at 62.50, the S&P 500 +3.70% and the US 10-year Treasury -2.30% as risk flows favour the brave enough to catch these falling knives in the stock markets resulting in a pause in the USD. However, what needs to be remembered is the stimulus package will include curbs on share buybacks, which means Wall Street has just lost its biggest bid. 

While the scale and speed of the response are unprecedented, it does not mitigate the economic volatility and duress in the short run."Even though the huge efforts taken by policymakers to counter the economic fallout of the virus have soothed nerves, until confidence in the economic recovery is entrenched it is likely that investors will retain long positions in the USD and potentially other safe havens such as the JPY, CHF and gold," analysts at Rabobank explained. 

USD/JPY levels

USD/JPY

Overview
Today last price 111.22
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 111.22
 
Trends
Daily SMA20 107.69
Daily SMA50 108.99
Daily SMA100 109.01
Daily SMA200 108.3
 
Levels
Previous Daily High 111.72
Previous Daily Low 110.08
Previous Weekly High 111.51
Previous Weekly Low 105.15
Previous Monthly High 112.23
Previous Monthly Low 107.51
Daily Fibonacci 38.2% 110.71
Daily Fibonacci 61.8% 111.09
Daily Pivot Point S1 110.3
Daily Pivot Point S2 109.38
Daily Pivot Point S3 108.67
Daily Pivot Point R1 111.93
Daily Pivot Point R2 112.64
Daily Pivot Point R3 113.56

 

 

 

 

 

 

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 holds onto recovery gains above 0.6050, RBA eyed

AUD/USD stays within the two-hour-old 0.6080-6100 range, currently around 0.6090, while stepping forward for Tuesday’s Asian session. In doing so, the pair holds onto Monday’s recovery gains, mainly due to slightly positive coronavirus (COVID-19) data from Europe, ahead of the key RBA meeting.

AUD/USD News

USD/JPY: Mildly bid above 109 amid mixed sentiment

Having benefited from the recovery in virus data from global hot-spot, while marking a three-day winning streak on Monday, USD/JPY buyers seem to catch a breath around 109.25 amid the early Asian session on Tuesday.

USD/JPY News

Gold: Refreshes four-week high, $1,685 on bulls’ radar

Gold prices remain on the front foot while taking the bids near $1,668, up 0.70%, amid the Asian session on Tuesday. In doing so, the bullion refreshes the four-week high with an intraday peak of $1,674.15 while also marking a fifth consecutive daily gain.

Gold News

WTI fragility amid OPEC+ delays

The price of oil has been under some pressure in recent trade considering the delays to the OPEC meeting which had been scheduled for Monday but put back until Thursday. Markets are otherwise enjoying some recovery amid signs of a slow down in COVID-19 contagion. 

Oil News

Johnson Hospitalised, Oil Awaits Treatment

Sterling slipped after UK Prime Minister Boris Johnson was moved to the intensive care unit for coronavirus treatment, but the broad risk trade remained strong on optimism with slowing growth in the number of Corona virus cases. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures