Yen Higher Amid Virus Concerns
The Japanese yen climbed against its major counterparts in the
Asian session on Monday, as weak U.S. retail sales data and growing
coronavirus infections sparked worries about an economic rebound
across the globe.
COVID-19 cases reached 95 million, while the death toll
surpassed 2 million world-wide.
China reported more than 100 new Covid-19 cases for the sixth
consecutive day, while the number of hospitalized Covid-19 patients
with serious symptoms in Japan topped 970, marking a record high
since the onset of the pandemic in the country.
The U.K. government announced that it will close all travel
corridors from today in order to restrict the spread of new
coronavirus variant cases.
Semi-conductor shares fell after the Trump administration
notified several Huawei suppliers that it's revoking their licenses
to work with the Chinese firm.
The yen advanced to a 1-week high of 140.65 against the pound,
3-week high of 116.29 against the franc and a 1-1/2-month high of
125.15 against the euro, off its early lows of 141.20, 116.59 and
125.49, respectively. Next key resistance for the yen is seen
around 138.00 against the pound, 112.5 against the franc and 120.00
against the euro.
Reversing from its previous lows of 74.14 against the kiwi,
80.07 against the aussie and 81.60 against the loonie, the yen
spiked up to a 2-week high of 73.83, near 2-week highs of 79.65 and
81.13, respectively. If the yen rises further, 72.00, 78.00 and
77.00 are likely seen as its next resistance levels against the
kiwi, the aussie and the loonie, respectively.
The yen edged up to 103.69 against the greenback, after falling
to a 4-day low of 103.93 at 7:00 pm ET. The yen is poised to
challenge resistance around the 100.00 level.
Looking ahead, at 8:15 am ET, Canada housing starts for December
are scheduled for release.