USDJPY bears regained momentum quite strongly and pushing the price below 107.80 area. Will USDJPY current bearish trend reach at 105.00? What are the charts and technical indicators are saying? Read more to find further insights into today’s USDJPY Technical Analysis.
April 14, 2020 | AtoZ Markets – USDJPY is currently trading around 107.450 area and trying to decline further. The pair has been quite non-volatile and impulsive with the down move of almost 160 pips. As per the current price action context, USDJPY bears has the potential to sustain further but may face support at 107.00 area.
USDJPY Current Bearish Trend May Catch Investors Eye
U.S. dollar dropped today as Coronavirus death toll is increasing gradually. The total number of infected people recorded today is 587,173, and the number of deaths rose to 23,644. The U.S. government is continuously trying to prevent the COVID-19 spread by locking down the whole country.
The CRFB, which is the coalition of former U.S. lawmakers, government officials and economists, said in a statement, “U.S. public debt by the September 30 fiscal year-end would exceed 100% of U.S. GDP, from just under 80% before the coronavirus crisis.” They also added, “These projections almost certainly underestimate deficits, since they assume no further legislation enacted to address the crisis and that policymakers stick to current law when it comes to other tax and spending policies.”
On the other hand, the Japanese currency gained momentum against all other major currencies as COVID-19 has no significant impact. Besides, the total number of infected people is 7645 till today, and the total number of deaths is 143. Moreover, Financial Minister Taro Aso said today, “Japan will allow companies to extend the deadline for submission of securities and financial reports until the end of September, amid difficulty closing their books for the recent financial year-end due to the coronavirus pandemic.”
Are USDJPY Bears Enough Strong to Sustain Further?
According to the Daily chart, the price is currently residing near 107.450 area and trying to sustain the bearish pressure. The current bearish bias is quite impulsive and non-volatile, which have the potential to decline further in the days ahead. As per the current scenario, if the price continues lower and breaks below 107.00 area, the price may reach 105.00 area soon.
Image: USDJPY Daily Chart
Furthermore, the dynamic level of 20 EMA is residing above the current price, which may act as a strong resistance to push the price lower. Besides, the MACD lines are residing near 0.00 level with a Bearish intersection in the making, which may add to the bearish confluence in the coming days.
To conclude, as the U.S. death toll rises due to Coronavirus issue, USD is expected to remain weak against JPY. As per recent job reports, USD may take more time to regain strength against JPY in the process.