13.03.2020: Why USD rising? Outlook for USD/JPY, AUD/USD.

Many governments have joined the fight against the coronavirus pandemic. Meanwhile, investors are taking a wait-and-see approach, constantly monitoring the situation. US stock indexes remain near the session lows, showing a high level of volatility. Yesterday, the Fed announced an expansion of the government bond repurchase program. Such a step a week before the FOMC next meeting may indicate that the regulator is likely to undertake another interest rate cut on March 18. The USDX index rose sharply to the level of 98.20 following the announcement of the news. However, a lot of investors are doubting that the central banks will be able to stabilize the global economy. With every day the threat of recession amid the rapid spread of the coronavirus is getting more and more evident. Today, the US dollar index is consolidating at 97.50 and most likely it will close the trading week at this level. Yesterday the head of the Bank of Japan and Prime Minister Shinzo Abe held an emergency meeting where they decided to ramp up additional stimulus next week to fend off risks to the economy from the coronavirus outbreak. So, traders are opening long deals on the yen in light of this event. The dollar/yen pair added 300 pips over the day up the level of 106.00 amid the news on the stimulus measures from the BOJ. The US dollar rally may be stalled by the resistance level at 107.14 but only if the Bank of Japan pursues its short-term financial interventions. If the BOJ cash injection is not enough, the pair is likely to decline.The Australian dollar updated its 11-year low after a sharp slump in the commodity market. Moreover, the chart fell even below the level we forecast, leading to a bigger profit on short deals. Technical analysis experts note that the Aussie is oversold and it may pull back to the level of 0.6376. Then, it will resume its downward movement. That’s all for now! We wish you profitable deals! See you on our channel with a new video in a couple of hours! https://www.instaforex.com FX Analytics - https://www.instaforex.com/forex_anal... Forex Calendar - https://www.instaforex.com/forex_cale... Forex TV from InstaForex - https://www.instaforex.com/instaforex_tv Forex charts - https://www.instaforex.com/charts Instant account opening - https://www.instaforex.com/fast_open_... Forex Trading Contests - https://www.instaforex.com/forex_cont... List of official InstaForex blogs:   / instaforex     / instaforex     / instaforex   #forex_news # asian_session #instaforex_tv