- USD/JPY slumps over 30 pips following the news challenging the market sentiment.
- US President Donald Trump and his wife Melania both tested positive and will quarantine in the White House.
- 50% Fibonacci retracement gains short-term sellers’ attention.
USD/JPY drops to 105.17, down 0.30% intraday, after the news of US President tested positive for the coronavirus (COVID-19) during early Friday. Having initially wobbling around 105.60, on the White House aide Hope Hicks’ infection, the pair slumped over 30 pips as the news concerning Republican leader unfolds.
Read: Breaking: US President Trump tests positive, S&P 500 Futures slumps over 30 points
The downside broke 200-HMA and is driving the quote towards 50% Fibonacci retracement of September 21-30 upside, at 104.90. However, the 105.00 threshold might offer an intermediate halt during the fall.
In a case where the bears refrain from stepping back below 104.90, the September 22 low near 104.40 will gain marked attention.
On the contrary, USD/JPY buyers’ return can only be materialized if the quote regains above the key HMA level of 105.37.
Following that, the 105.60 and the late-September high of 105.80 can lure the short-term bulls ahead of directing them to the 106.00 round-figure.
USD/JPY HOURLY CHART