The coronavirus epidemic - and the collapse in global interest rates it has sparked - may have blown a hole in conventional market wisdom that Japan's yen strengthens during crises, triggering a warning bell for investors. The yen has long been among the assets in greatest demand during disasters, when waves of overseas-held capital traditionally flee back to Japan, pushing the currency higher. And for more than two decades, the trend has held.

 

 

 

Since 1997, a 5% fall in the U.S. S&P500 index was accompanied 76% of the time by yen appreciation, according to a study by Nordea.

USDJPY still in a trading range status with 106.12 as Resistance and 105.10 as Support for today. Need a close under 104.96 confirms a short term turnover and will drag trade down along 104.10. A close over 105.98 is needed to rekindle bull trending action.

R2          106.12
R1          105.84

 
S1          105.38
S2          105.10