For four consecutive trading sessions, the USD/JPY pair is moving in a limited range between 106.92 and 108.08 levels, and at the time of writing, the pair is around the 107.47 support, amid a bearish momentum despite the recent strength of the US dollar and the flight of investors to it as a safe haven. Investors are waiting, especially with the US states beginning to open the economy, according to US President Trump's demands. The reopening came amid a state of global economic gloom, as oil futures fell below zero for the first time in history, confirming the depth of the crisis caused by the coronavirus. Trump's plan to reopen the US economy faces severe criticism, especially from the health sector, amid fears that it will reopen without finally eradicating the epidemic, meaning the possibility of a more violent wave of infections and deaths from this disease.
Texas on Monday started a week of slow reopening, starting with state parks, while officials said that later in the week, stores would be allowed to provide dock service. Tennessee Governor Bill Lee announced on Monday that companies in most parts of the state would start reopening early next week, although the request did not cover provinces with the largest cities, including Nashville, Memphis, Knoxville, and Chattanooga. Republicans lead both states.
For his part, West Virginia Republican Governor Jim Justice said that he would allow hospitals to start voluntary procedures if the facilities met an unspecified set of criteria, while Colorado State Governor Jared Police said on Monday that he would allow ending staying at home next week as long as strict social exclusion and protection measures continued. But rulers from other states said they lacked the test supplies they needed and warned that they might develop a second wave of infection, given how people without symptoms can spread the disease.
The coronavirus death toll in the US has reached 42,300 - the highest number in the world - with nearly 787,000 confirmed infections, according to Johns Hopkins University. The true figures are believed to be much higher, partly due to limited tests and difficulties in calculating the dead.
According to the technical analysis of the pair: The general trend of the USD/JPY is still bearish especially with its stability below the 108.00 support, and I still expect the trend to continue downward and test stronger support levels as long as the global concern about the Corona epidemic and its effects persist. The closest support levels for the pair are currently 107.00, 106.55 and 105.90 respectively. Bulls are waiting for the pair to return to the 110.00 psychological resistance area to be able to reverse the current general trend. There are no major Japanese economic releases today, and from the US, existing home sales will be announced. The pair will react a lot to whether or not investors will seek safe havens.
