Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Yen and US Dollar Rise as Wall Street Drops. USD/JPY Eyes Resistance

Yen and US Dollar Rise as Wall Street Drops. USD/JPY Eyes Resistance

Daniel Dubrovsky, Contributing Senior Strategist


What's on this page

Japanese Yen, USD/JPY, US Dollar, AUD/USD, Wall Street, Virus – Asia Pacific Market Open

Japanese Yen and US Dollar Cautiously Rise as Wall Street Ends on a Sour Note

The anti-risk Japanese Yen and similarly-behaving US Dollar saw cautious gains on Tuesday. Meanwhile the sentiment-linked Australian and New Zealand Dollars were some of the worst-performing major currencies. Equities wrapped up the last trading day of March on a cautious note in what was the worst month for both the Dow Jones and S&P 500 since the 2008 financial crisis.

Forex for Beginners
Forex for Beginners
Recommended by Daniel Dubrovsky
Forex for Beginners
Get My Guide

For a week we saw market sentiment broadly improve as investors priced in aggressive monetary and fiscal easing across the globe to help combat the coronavirus outbreak. With a 4th potential package from the US perhaps not in the cards until after the Easter holiday, attention arguably started to shift the economic impact of social distancing measures.

Wall Street initially popped after Consumer Confidence unexpectedly clocked in more-optimistic than anticipated. Still this was the most sour reading since early 2017 and the cutoff for the data occurred before last week’s record-breaking surge in jobless claims. Both the S&P 500 and Dow Jones preceded to drop afterwards and closed -1.60% and -1.84% to the downside.

Markets appeared to brush aside clues into what the next local fiscal package could be. President Donald Trump said that he is seeking about a $2 trillion infrastructure package. Meanwhile coronavirus cases in New York rose 9.3k on Tuesday with deaths surpassing 1k. Spain and Italy reported that cases might have peaked and they could be entering a period of stabilization.

Starts in:
Live now:
Dec 22
( 13:12 GMT )
Recommended by Daniel Dubrovsky
Short-term Trading Strategy Webinar
Register for Webinar
Join Now
Webinar Has Ended

Wednesday’s Asia Pacific Trading Session

S&P 500 futures are pointing lower heading into Wednesday’s Asia Pacific trading session. This followed a briefing from the White House where Trump warned of a “painful” two weeks ahead. This is as Deborah Brix – a key public health official in the coronavirus task force – warned that about 200k citizens are projected to succumb to the virus. Prospects that the country may stay in self-isolation mode risks reigniting volatility in stock markets. Ahead, this leaves AUD/USD at risk should haven demand boost the highly-liquid US Dollar.

Japanese Yen Technical Analysis

USD/JPY appears to have slowed its top after prices took out ley rising support from earlier in March – red lines below. Yet guiding the pair lower appears to be “potential” resistance – blue line. A third confirmation point may validate this trend line and maintain the downward trajectory towards lows from last year. Otherwise a push above it towards peaks from 2019 exposes 109.60.

USD/JPY Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 7% -11% -5%
Weekly 26% -23% -11%
What does it mean for price action?
Get My Guide

USD/JPY 4-Hour Chart

USD/JPY 4-Hour Chart

Chart Created Using TradingView

--- Written by Daniel Dubrovsky, Currency Analyst for

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.