- USD/JPY struggles to extend the latest weakness.
- Traders await fresh clues as the US is finally in the action mode.
- Coronavirus fears loom, Washington State confirmed 366 cases, Italy released guidelines for doctors.
- Japan PPI and US President Trump’s speech will be the key.
USD/JPY remains sluggish around 104.40 amid the early Thursday morning in Asia. The pair seems to look for firm direction amid the market’s gloomy mood due to the coronavirus (COVID-19) and the global policymakers’ reactions.
Although diplomats and monetary policymakers from the US, the UK and Europe, not to forget the major part of Asia, are on the moves, investors feel a little less active reactions to the deadly virus. The reason is likely the lack of any news of recovery from the developed economies that are now under immense pressure to tackle the epidemic.
The World Health Organization (WHO) announced COVID-19 as the pandemic (finally). Though, there haven’t been any new moves as markets await US President Donald Trump’s address from the Oval Office, scheduled at 01:00 GMT. The US leader is expected to announce details of his plan to shun the negative implications of the deadly virus.
The latest statistics from the US confirm the death toll reaching 29 but there are doubts raised against the official figures. Also criticizing the Trump administration’s lack of swift action are headlines from China’s Global Times.
Further, fresh attacks have been registered in Baghdad and two US military personnel have been noted as dead.
Amid all this, the risk-tone remains sluggish that improved recently on US President’s tweet signaling likely strong economic reaction to the deadly virus in his upcoming speech. Portraying this, S&P 500 Futures mark 1.0% gains to 2,768 by the press time.
Investors now await US President Trump’s speech with most signs suggesting a big relief for taxpayers as well as common people to fight against the epidemic. On the economic calendar, Japan’s February month PPI, expected -0.3% MoM versus +0.2% prior, could also please the momentum traders.
Technical Analysis
A descending trend line from the early last week caps the immediate recovery around 105.40. Alternatively, sustained declines below 104.00 can recall Monday’s bottom surrounding 101.20.
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