USD/JPY probes 111.00 as US dollar bulls keep the helm, Japan holiday
- USD/JPY holds onto recovery gains, refreshes monthly high.
- The US dollar buying renewed following fresh coronavirus headlines.
- Japanese banks are closed due to Vernal Equinox Day.
With the risk aversion jumping back to the desk, USD/JPY extends the run-up to 111.00, currently near 110.85, amid the initial Asian session on Friday.
News of the coronavirus (COVID-19) symptoms in the UK Brexit Chief David Frost and the British Chancellor’s likely leap to fight against the pandemic triggered initial risk-off.
The moves got additional support from the news that US President Donald Trump will not attend the April and May month G7 meetings in person due to the virus fear.
Also supporting the pair could be the US dollar strength based on the CNBC piece mentioning the details of the US Senate GOP’s third proposal to ward off the disease with a huge stimulus.
The latest coronavirus updates highlight the widespread outbreak in the UK and Italy While the news of Gilead's Remdesivir medicine is being tested to cure Covid-19 seemed to have a little positive impact on the trade sentiment.
While portraying the fresh risk-off, the S&P 500 and Down Jones Futures are declining near 0.50% by the press time. The move is in contrast to the previous risk reset portrayed by the Wall Street’s performance.
It should also be noted that the BOJ’s fight against the coronavirus got an additional fuel of bond buying the previous day whereas the Fed also announced measures via swap line exchanges with multiple central banks to tame the greenback’s shortage.
Moving on, the off at Japan and a lack of major data/event up on the calendar could offer relief from the previous day’s volatile session. Though, virus headlines will keep the driver’s seat.
Technical Analysis
A sustained break of 200-day SMA, at 108.30 now, pushes the pair towards February month high near 112.25.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
