Yen continues to strengthen as AUD / JPY drops to new weekly low
The weak retail sales figure in the United States compounded the negative tone of the markets.
The main beneficiary is the yen, which is the session high across the board. With the latest move, the AUD / JPY is now down 1.2% – or 99 pips – and breached Monday’s low to the worst level since December 21.
AUD / JPY crossed the 100-day moving average for the first time in 2022.
This pair is a good approximation of the overall risk feeling. Several yen crosses hit new weekly lows and appear vulnerable as the market refocuses on the omicron, particularly in China.
With the earnings season starting now, I fear we may see waves of corporate warnings regarding the virus hit and / or weak demand in the first quarter.
S&P 500 futures are down 40 points.