USD is falling against JPY today. The instrument loses about 0.58%, testing 109.00 for breakdown. JPY is again attracting investors as a safe asset. In turn, today’s Japanese macroeconomic statistics could be better. Tokyo Core CPI slowed down in February from 0.7% YoY to 0.5% YoY, worse than forecast of 0.6% YoY.

This week, JPY is strengthening against USD. Amid the outbreak of coronavirus, investors are getting rid of commodity currencies, switching to shelter assets, including government bonds.

The pair may fall.

On the daily chart, the wave (B) of the higher level formed, shaped as the triangle ABCDE. Now, the development of the wave (C) is starting. If the assumption is correct, the pair will fall to the levels of 107.65–104.58. In this scenario, critical stop loss level is 112.20.

In the middle of the week, the USD/JPY pair made a significant upward pull, which was supported by subsequent trading sessions. The main reason analysts call the impact of the coronavirus epidemic on the economic performance of Asian countries. The People’s Bank of China was forced to lower its basic rate by 0.10 percentage points at once to 4.05% from 4.15%.

On the 4-hour chart, an uptrend is forming. The instrument broke the upper border of the sideways channel formed by the borders of Bollinger Bands, the indicator cloud is greatly expanded, which indicates the likely upward trend in the short term. The MACD histogram is in the positive area, rapidly increasing volumes, the signal line crosses the body of the histogram upwards, forming a signal to open long positions. Stochastic is in the overbought zone, the oscillator lines are reversing downwards.