USD/JPY extends a drop towards the 105.00 handle
As stocks are sliding after news of US president Trump testing positive for the coronavirus, the yen is the main beneficiary in the currencies space with USD/JPY now slumping further to a low of 105.04 ahead of European morning trade.
The pair has fallen from 105.50 levels to near 105.00 now as sellers are looking to seize near-term control on a break below the key hourly moving averages.
That puts the 105.00 handle as the next key technical level in focus and a break below that will see sellers feeling more reinvigorated to chase a downside move.
What makes a downside argument more compelling is that we are also seeing the key risk barometer in FX i.e. AUD/JPY start to test key technical levels as well.
AUD/JPY has now fallen by nearly 1% in a drop to 75.05 and nears a test of its 100-day MA (red line) @ 75.03. The pair is breaching its own 100-hour moving average @ 75.23 but there is some added near-term support from the 200-hour moving average @ 74.95.
If those support levels give way in the sessions ahead, that could spur on a more softer risk mood in the market especially with stocks looking a little more vulnerable.
