USD/JPY testing 109 and with vigor as US stock future rise 3%

USD/JPY has spiked to the 109 handle as COVID-19 grips Japan.
US S&P500 emini futures up around 3% and weighs on yen.

Ross J Burland FXStreet

USD/JPY is trading at 108.99 at the time of writing, +0.55% having climbed from a low of 108.34 to a high of 108.99. The US dollar is firm in Asia today, albeit capped around 100.85 with a risk-on market as the yen drops with Japan moving to a state of emergency.

The Japnese yen has been sold-off across the board and is likely to struggle as Japan's COVID-19 cases spike. The Nikkei Asian Review reported that Japanese Prime Minister Shinzo Abe decided on Monday to declare a coronavirus emergency as new cases in the capital increase at a record pace. "The government will hold an unofficial meeting of a panel of experts and start preparing for the declaration."

Risk-on and Japanese sike in COVID-19 weighs on the yen

At the same time, we have seen equities extend their positive move today, with US S&P500 E-Mini futures up around 3% at the start of this week. Weekend news has shown some glimmers of hope with respect to COVID-19 and today's US Task Force presser provided some reassurance to US citizens that the optimists on the panel believe that there is a light at the end of the tunnel and that the peak is near. Headlines from the presser can be seen here: Trump: Hopes we're seeing levelling off of coronavirus in the hottest spots.

A focus on oil

Chart of the week: WTI bulls back in charge, taking on a 61.8% retracement

Meanwhile, there is a keen focus oil which surged on Friday, as US President Donald Trump’s tweeting of a 10mbpd cut was likely and “maybe substantially more”, along with the confirmation that an OPEC+ meeting would take place this week boosted sentiment. WTI closed up $6.8/ 32% although as given some of that back in the open today, -$2.20 at the time of writing.

USD/JPY levels

USD/JPY

Overview
Today last price	108.93
Today Daily Change	0.39
Today Daily Change %	0.36
Today daily open	108.54

Trends
Daily SMA20	107.93
Daily SMA50	108.77
Daily SMA100	108.97
Daily SMA200	108.33

Levels
Previous Daily High	108.68
Previous Daily Low	107.8
Previous Weekly High	108.73
Previous Weekly Low	106.92
Previous Monthly High	111.72
Previous Monthly Low	101.18
Daily Fibonacci 38.2%	108.34
Daily Fibonacci 61.8%	108.14
Daily Pivot Point S1	108
Daily Pivot Point S2	107.46
Daily Pivot Point S3	107.12
Daily Pivot Point R1	108.88
Daily Pivot Point R2	109.22
Daily Pivot Point R3	109.75

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.