- USD/JPY snaps two-day losing streak while bouncing off the two-week low.
- US dollar holds broad gains amid risk aversion.
- Japan’s Economy Minister signals support for production increase in the stimulus.
USD/JPY fails to respect the key risk catalysts while portraying the broad US dollar strength, currently up 0.15% near 107.50, during the initial Tokyo session on Thursday.
Coronavirus continues to push global policymakers towards fierce actions. The latest surge in the US cases beyond 200,000 seems to have been the reason for the Fed to take temporary actions to ease liquidity for large banks. Earlier in the day, US President Donald Trump reiterated his call for the “tough two-weeks”.
On the other hand, Tokyo registered a record hit in daily coronavirus (COVID-19) cases extends school closure through May 06. Recently, Japan’s Economy Minister Nishimura said, “Will consider support for production increase and adopting of ECMO as part of the economic package for coronavirus.”
While portraying the risk-off, the US 10-year treasury yields drop further below 0.60%, to 0.57%, whereas Japan’s NIKKEI decline 1.8% to 17,730 by the press time.
Looking forward, investors will keep eyes on the virus headlines amid a lack of major data for fresh impulse. Even so, the US economic calendar could grab market attention during the later part of the day as Jobless Claims are expected to flash another worrisome number.
Technical analysis
Unless providing a daily closing beyond 21-day SMA, currently near 107.70, sellers remain hopeful.
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