- Wall Street's main indexes suffer heavy losses on Wednesday.
- Better-than-expected ADP jobs data fail to help the market sentiment improve.
- US Dollar Index gains traction in late American session.
The USD/JPY pair dropped to its lowest level since March 18th at 107 on Wednesday but staged a modest rebound in the last hour on the back of broad-based USD strength. As of writing, the pair was trading at 107.25, erasing 0.27% on a daily basis.
The JPY gathered strength against its major rivals as the risk-averse environment ramped up the demand for safe-haven assets. Reflecting the intense flight-to-safety, Wall Street's three main indexes are down between 3.5% and 4.2% on the day while the 10-year US Treasury bond yield, which lost more than 10% earlier in the day, was erasing 6.5%.
DXY climbs higher toward 100
Earlier in the day, the data published by the ADP showed that the private sector employment in the US declined by 27,000 in March. Furthermore, the ISM's Manufacturing PMI fell to 49.1 from 50.1 in March. Although both of these readings came in much better than analysts' estimates, the market sentiment remained largely unchanged.
The fact that these reports are conducted using data through mid-March suggests that the readings don't show the full impact of the coronavirus outbreak on the economy. Hence, the US Dollar Index (DXY) largely ignored these figures and spent the first half of the American session in a narrow range above 99.50 before gaining traction in the last hour. At the moment, the DXY is up 0.9% on the day at 99.85, helping the pair limit its losses.
There won't be any significant macroeconomic data releases from Japan on Thursday and the risk perception is likely to continue to drive the pair's action during the Asian session.
Technical levels to watch for
|Today last price||107.26|
|Today Daily Change||-0.31|
|Today Daily Change %||-0.29|
|Today daily open||107.57|
|Previous Daily High||108.73|
|Previous Daily Low||107.46|
|Previous Weekly High||111.72|
|Previous Weekly Low||107.76|
|Previous Monthly High||111.72|
|Previous Monthly Low||101.18|
|Daily Fibonacci 38.2%||107.95|
|Daily Fibonacci 61.8%||108.25|
|Daily Pivot Point S1||107.11|
|Daily Pivot Point S2||106.65|
|Daily Pivot Point S3||105.84|
|Daily Pivot Point R1||108.38|
|Daily Pivot Point R2||109.19|
|Daily Pivot Point R3||109.65|
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.