alexa certify
0

USD/JPY Slide Broke 200 Hour SMA

USD/JPY dropped more than 60 pips on news that challenges market sentiment. US President Donald Trump and his wife Melania have tested positive and will be quarantined at the White House. 

The USD/JPY pair was moving slightly higher, around 105.60. However, it slumped to an intraday low of 104.95. Despite its recovery afterward, the pair still stood on a negative level around the 105.15-20 region.

The decrease has broken the 200 hourly SMA. And moved the pair towards the 50% Fibonacci retracement of the September 21-30 upward movement at 104.90. Still, the 105.00 level could offer additional support.

The 50% Fibonacci retracement attracts the attention of short-term sellers.

A possible downside target would be bears moving below the lows of September near 104.40. 

The USD/JPY buyers would return if the pair recovered at the level of 105.37.

The 105.60 level and the late September high of 105.80 may draw short-term bulls before targeting the round level of 106.00. 

Trump tested positive for Covid-19

Donald Trump tweeted this Friday that he has tested positive for the coronavirus after one of his team members got infected a few hours earlier. Global markets became cautious on the news before any confirmation that the leader of the world’s largest economy contracted the virus. 

Sean Conley, the White House doctor, made a comment on Friday that the president and the first lady are doing well. They plan to stay home inside the White House during their recovery. 

The doctor also mentioned that he hopes Trump will continue to perform his duties without interruption while he recovers. In his tweet, Trump stated that he stated positive on the coronavirus, and they begin the quarantine and recovery process immediately. 

With the COVID-19 stimulus talks already at risk, the US President’s quarantine will add uncertainty to global markets, something that may help the US dollar recover from the latest losses. 

  • Support
  • Platform
  • Spread
  • Trading Instrument
Comments Rating 0 (0 reviews)

Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.

You might also like

Leave a Reply

Sending

Financebrokerage