- USD/JPY consolidates the recent losses.
- US President Donald Trump praises the tests, says no to quarantine in hot-spots.
- Risk-tone remains under pressure, measures to combat the pandemic in focus.
Despite the coronavirus (COVID-19) fears, USD/JPY refrains from extending the previous two days’ declines while rising to 107.95 amid the early Monday morning in Asia.
Risk-off continues…
Even if the risk barometer refrains from the previous two-day declines while taking rounds below 108.00, the risk aversion weighs on the US stock futures that begin the week’s trading with nearly 2.0% losses by the press time.
The reason could be traced from no other than the pandemic that recently firmed in the US and the UK. While the cases in the US surged beyond 130,000 to make it the world leader, the news that the UK PM Boris Johnson recently got infected shocked Britain.
Elsewhere, conditions in Spain and Italy seem to improve slowly whereas the rest of the major economies are still suffering from the disease that has renewed fears of the great financial crisis.
US President Trump recently signaled that the social distancing guidelines will remain in place until April 30. The Republican leader earlier stepped back from quarantines in the virus hot-spots like New Jersey, New York and Connecticut but urged to avoid non-essential domestic travel for two weeks.
The clinical trials to find the cure are flashing upbeat results off-late and Remdesivir could help the global economy recover from the bad days. However, nothing can be sure at this moment as it takes a long time to find the remedy of such critical disease.
Meanwhile, investors will keep eyes on further developments concerning the virus as well as global measures to combat the same for intermediate trade directions.
Technical analysis
Unless breaking below 21-day SMA, near 107.70, USD/JPY prices less likely to revisit 106.00. As a result, the pair’s pullback to 109.50 can be expected.
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 clings to strong daily gains near 1.0400
EUR/USD remains on track to post strong gains despite retreating from the session high it set above 1.0430. The positive shift in risk mood, as reflected by the bullish action seen in Wall Street, forces the US Dollar to stay on the back foot and helps the pair hold its ground.
GBP/USD surges above 1.2500 as risk flows dominate
GBP/USD extends its recovery from the multi-month low it set in the previous week and trades above 1.2500. The improving market sentiment on easing concerns over Trump tariffs fuelling inflation makes it difficult for the US Dollar (USD) to find demand and allows the pair to stretch higher.
Gold rebounds from session lows, trades above $2,630
Gold benefits from the broad-based US Dollar weakness and recovers above $2,630 after falling to a daily low below $2,620 in the early American session on Monday. Meanwhile, the benchmark 10-year US Treasury bond yield holds above 4.6%, limiting XAU/USD upside.
Bitcoin Price Forecast: Reclaims the $99K mark
Bitcoin (BTC) trades in green at around $99,200 on Monday after recovering almost 5% in the previous week. A 10xResearch report suggests BTC could approach its all-time high (ATH) of $108,353 ahead of Trump’s inauguration.
Five fundamentals for the week: Nonfarm Payrolls to keep traders on edge in first full week of 2025 Premium
Did the US economy enjoy a strong finish to 2024? That is the question in the first full week of trading in 2025. The all-important NFP stand out, but a look at the Federal Reserve and the Chinese economy is also of interest.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.