Risk aversion dominates the financial world this Wednesday, sending USD/JPY to a fresh October low of 104.15, as coronavirus-related lockdown are pushing investors into safety, FXStreet’s Chief Analyst Valeria Bednarik reports.
See: USD/JPY at risk of losing the 104.00 psychological mark – Commerzbank
Key quotes
“After the WHO declared that the epicenter of the coronavirus pandemic has moved back to Europe, there are several market talks indicating national lockdowns coming to the Old Continent. France, the Netherlands and the UK are those studying the tougher measures, but restrictions may also come to Germany and other countries.”
“Technical readings in the 4-hour chart suggest that the USD/JPY pair will extend its decline, as the Momentum indicator heads firmly lower within negative levels, while the RSI indicator hovers around 30, with a modest bearish slope. In the mentioned time frame, the pair is trading below bearish moving averages, with the 20 SMA around 104.65.”
“A steeper decline could be expected on a clear break below 103.99, the September monthly low.”
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