Japan is considering state of emergency - JPY under pressure
Christophe Chevalier April 7, 2020 2:22 PM
USD/JPY is rebounding as investors are considering riskier assets than the Japanese yen, usually considered as a safe haven.
The USD/JPY is rebounding as investors are considering riskier assets than the Japanese yen, usually considered as a safe haven. Otherwise, Japanese Prime Minister Shinzo Abe said his government will announce a state of emergency in seven regions amid the coronavirus outbreak, and is preparing a 108 trillion yen stimulus package to support the economy.
From a technical point of view, the pair has rebounded above its April bottom at 107.00 and stands above its 50-day moving average. The daily RSI also stands within its buying area between 50 and 70. Readers may therefore consider the potential for further advance towards horizontal resistance at 110.20 and towards Feb. 20 top at 112.25 as long as 107.70 holds on the downside.
Source: GAIN Capital, TradingView
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.