Yen Higher On Virus Fears

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The Japanese yen moved up against its major counterparts in the Asian session on Monday, as worries about the economic impact of the novel coronavirus pandemic pushed investors into the safe-haven assets.

The U.S. became the new epicenter of the global coronavirus pandemic, with the most number of active cases and deaths.

The U.S. recorded 1,514 Covid-19 related deaths, lower than the previous day’s toll of 1,920, over the past 24 hours, according to Johns Hopkins University tally as of 8:30pm Sunday (0030 GMT Monday).

Germany’s number of confirmed coronavirus infections rose by 2537 to 123,016, according to data from the Robert Koch Institute for infectious diseases. That was lower than a 2821 increase reported on Sunday, and marked the third decline after four days of increases.

France’s overall death toll from the coronavirus rose to nearly 14,400 – but admission into intensive care remained lower for the fourth day in a row.

European markets remain closed for Easter.

Data from the Bank of Japan showed that Japan M2 money stock rose 3.3 percent on year in March, coming in at 1,046.0 trillion yen. That exceeded expectations for an increase of 2.9 percent following the 3.0 percent gain in February.

The M3 money stock climbed an annual 2.7 percent to 1,380.6 trillion yen versus expectations for a gain of 2.4 percent and down from 2.5 percent in the previous month.

The yen appreciated to a 10-day high of 107.85 against the greenback, from a low of 108.53 set at 6:00 pm ET. On the upside, 105.00 is likely seen as the next resistance level for the yen.

The yen spiked up to a 5-day high of 117.95 against the euro, after falling to 118.71 at 6:00 pm ET. The yen is seen finding resistance around the 113.00 level.

Recovering from its early lows of 135.22 against the pound and 112.39 against the franc, the yen firmed to 5-day highs of 134.51 and 111.73, respectively. The yen is likely to face resistance around 129.00 against the pound and 108.00 against the franc.

The yen touched 4-day peaks of 65.44 against the kiwi, 68.34 against the aussie and 77.29 versus the loonie, following a decline to 66.08 and 68.97 and a 4-day drop to 77.86, respectively. The next possible resistance for the yen is seen around 62.5 against the kiwi, 65.00 against the aussie and 76.00 versus the loonie.

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