It is a very thin market out there today with the Easter holidays, with most of the major markets out on holiday. USD/JPY is subsequently taking a dive and testing the 108 figure with a low of 107.99 made, falling from a high of 108.52.
The overall levels of volatility in the markets are likely to keep the US dollar underpinned which could leave the yen vulnerable longer term, especially should COVID-19 in Japan continue to spread following a sudden spike in infections since the Tokyo Olympics were postponed till next year. A major concern is a way in which the Japanese are managing the outbreak with the government continuing to refuse to face up to the magnitude of the outbreak, committing Japan to a ‘unique’ and highly-risky approach that is based on a certain ‘cluster infection’ theory.
USD/JPY LONG (Buy)
ENTER AT: 107.87