As stocks stage a big comeback, so does the USDJPY.
US stocks are still down but has recouped much of the declines.
The NASDAQ index is down 4% on the day. It is currently down -1.04%.
The S&P index was down about 3.5%. It is now down -0.82%
With the rise in stocks, the USDJPY has also retraced much of its declines. It was down 74 pips at the low and just moved up to 110.35 (down 7 pips on the day). The price has come off that level and trades at 110.21 currently, but the move to the upside has moved back above the consolidation high that confined the range from February 5. That area had a top at 110.129. Stay above that box, and we could see more upside potential.
On the downside today, the low price did get very close to a swing area in the 109.61 – 656 area. The low price reached 109688 before bouncing higher.
Dampening enthusiasm, is the likelihood that the worst that is not been reached globally at least.
Italy just announced at the number infected increased to 650 with 3 more deaths. That is up from single-digit numbers last week. Goldman Sachs also said today that the S&P could quickly fall another 7% on coronavirus fears and warned that US firms will generate any profit in 2020.
