USD/JPY snaps two-day losing streak to probe 108.00
- 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.