Markets are on a rather aggressive risk-on mood today after an experimental drug used to treat COVID-19 showed promising results. Remdesivir – a drug developed by Gilead Sciences – was used in treating the coronavirus patients with severe symptoms and the first results were promising, with patients reportedly recovering rapidly.
As the world clung on to hopes of a miracle treatment and the lift of lockdown measures, we saw safe-havens such as gold and the JPY edge lower, while stock markets push higher. However, this bull trend may not last as rebooting the economy will definitely take time and the severe hit may have a long-lasting impact that could lead to a global recession.
We would hence sell the USDJPY at 107.68 with SL at 107.98 and TP at major support at 107.05. This trade is based on the 4h chart.