OctaFX | OctaFX Forex Broker
Open trading account
Back

USD/JPY snaps two-day losing streak as Tokyo open questions risk-off

  • USD/JPY recovers from the four-day low, S&P 500 Futures rise 1.0%.
  • Recent coronavirus updates favor risk reset.
  • The economic calendar regains its importance but COVID-19 will keep the driver’s seat.

USD/JPY recovers 0.23% to 111.00 amid the initial trading hours of Tokyo open on Tuesday. The yen pair benefited from the upbeat Japan data as well as welcome coronavirus updates. Magnifying the market reaction to the risk reset could be the return of Japanese traders from Monday’s holiday due to the Emperor’s Birthday.

China’s coronavirus numbers join upbeat comments from the US

As per the latest statistics, the death toll in mainland China and the epicenter Hubei both declined on February 24 from the previous day. This justifies the Chinese government’s scaling back of warning levels in many provinces.

Also cutting the fears are the statements from US President Donald Trump and the Federal Reserve Cleveland President Loretta Mester that do not consider coronavirus as a major risk.

Even so, the updates from South Korea and comments from businesses like Mastercard and United Airlines keep the risk recovery under check. Additionally, the US CDC warning to travelers of South Korea and dumping the US-South Korea military exercises, for now, question the optimism.

That said, the US 10-year treasury yields recovery from a three-year low to 1.41% whereas the S&P 500 Futures rise 1.0% to 3,257% by the press time.

It’s worth mentioning that the rise in Japan’s January month Corporate Service Price Index to 2.3% from 2.1% expected failed to gain any market attention.

Moving on, Japan’s Coincident Index and Leading Economic Index figures for December will precede the US data concerning housing, manufacturing and consumer sentiment.

While the recent risk reset is likely to take clues from China, South Korea, Italy and Iran still flash red signals and portray the spread of coronavirus outside Beijing.

Technical Analysis

The lows marked on Friday, around 110.85 and 111.15, limit the pair’s immediate upside while a fresh decline below a short-term rising trend line since February 03, around 110.30/25 now, could recall the bears.

1 in 6 Australian businesses already affected by coronavirus – Survey

The latest Roy Morgan Snap SMS Survey of 1,170 Australian businesses conducted in mid-February showed that about 17% of them have already been affecte
Read more Previous

Tianjin University has successfully developed an oral vaccine to protect against CODV 19 – Global Times

The Global Times says that Tianjin University has successfully developed an oral vaccine to protect against CODV 19. Huang Jinhai, the professor who l
Read more Next
Start livechat