USD/JPY touches a session high of 109.09
US futures are up by over 1% while Treasury yields are about ~4 bps higher across the curve, with 10-year yields now at 1.565% currently. That is helping to give risk trades another nudge higher with USD/JPY now just above the 109.00 handle.
Price is keeping just above the 200-hour MA (blue line) as well and if buyers can manage a break of that level, the near-term bias turns more bullish once again.
There is some minor resistance from the 38.2 retracement level @ 109.07 as well as the Friday high of 109.14 but further key resistance is only seen around 109.50 and then the region around 109.60-70 next - as better outlined in the daily chart.
Looking at all of this, I'm still reserving some need to be cautious. Sure, the virus headlines aren't getting significantly worse but it doesn't necessarily mean that the situation has been defused and the world will return to normal overnight.
I still reckon the market has the ability to move on from this issue more quickly than somewhat similar situations in the past but these are still early days in my view.
There is still no accurate or quantifiable means to gauge how this will impact the Chinese and global economy, with the real fear being that the Hyundai case earlier today may not necessarily be a one-off issue.
As such, there is some reason to be less fearful about the coronavirus outbreak but it isn't reason enough to start being greedy and complacent again considering the risks still present for global travel, trade and the overall economy.
