USDJPY held on to its gains following its drop to overnight and near 5-month lows at 106.85, closing 0.25% higher at 107.38. Wall Street’s rally and the overall US Dollar recovery lifted USDJPY to an overnight high at 107.692. US measures to fight the coronavirus helped the Dollar Index (USD/DXY) to recover from one-month lows. The Bank of Canada and Hongkong Monetary Authority joined the Fed with rate cuts.
The coronavirus spread continues to grow outside of China. Covid-19 infections increased in the US mainland. This should put a cap to any significant USDJPY rallies. US Treasury yields hovered near their lows. The key US 10-year rate stuck to 1.00%.
USDJPY has immediate resistance at 107.70 followed by 108.00. Immediate support lies at 107.00 and 107.80. Look to trade a likely range today of 107.0070. Prefer to sell rallies.