USDJPY consolidates as market come up for air, suffocating in COVID-19

USDJPY consolidates as market come up for air, suffocating in COVID-19

  • USD/JPY holding steady as markets pick out the positives in stimulus plans.
  • COVID-19 cases slowing down, although the USA is getting hit hard. 
  • Stocks come up for air on less negative themes.

USD/JPY is trading at 111.14 within a range of between 111.04 and 111.53, -0.06% at the time of writing in a positive open in Asian stocks following Wall Street's impressive rally whereby the DJIA jumped by the most since 1933 amid stimulus hopes.

Risk-on back in play

We have seen the ASX 200  add +4.1%, the Nikkei 225 +5.1% and the KOSPI +3.8%. This rides a wave of US benchmarks positive closes, with the Dow DJIA, added on 2,112.98 points, or 11.37%, to close at 20,704.91, the S&P 500 index added 209.93 points, 9.38%, to close at 2,447.33, and the Nasdaq Composite index rose 557.18 points, or 8.12%, ending trading at 7,417.86. For 2020, this all leaves the Dow down by 27.45%, the S&P 500 -24.25%, and the Nasdaq is 17.33% lower. In Asia today, there is some chatter that Apple could begin re-opening some retail stores in the first half of April. 

Meanwhile, following the close on Wall Street we also had a rather optimistic COVID-19 Task Force presser, more on that here: 

  • US Pres. Trump: Dow surges in historic gain, we want re-open for business when time is right

Despite dire PMI data, which would be expected due to the COVID-19 crisis, there was a more optimistic tone to due to the hopes of a $2 trillion rescue package from Congress. Also, the implications of the Fed’s unlimited QE and Germany's close to 35% of GDP in terms of stimulus as well as the nations considering a post-COVID-19 stimulus as part of an enormous stimulus plan lifted spirits as investors can start to see how there could be a way through the mess.

However, many would argue that it is far too soon to be picking a bottom. The VIX Index remains above 60%, compared to about 15% as recently as mid-February as an indication and reminder of where in reality markets are at this juncture. Over the previous 24 hours, 85 percent of new COVID-19 cases were in Europe and the United States, and of those, 40 percent were in the United States – we may not have seen the worst of this yet in the USA.

USD/JPY level 

USD/JPY

Overview
Today last price 111.09
Today Daily Change -0.13
Today Daily Change % -0.12
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

 


Source: FxStreet

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