Development of the coronavirus infection in China has significantly slowed down
Such a movement means the weakening of the yen and strengthening of the oil. The dynamics of this PCI may depend on the situation with the coronavirus infection in China. Currently, an increase in the number of infected and dead people has significantly slowed down. So far, the peak of the infection was on February 5, when a little less than 4 thousand new cases of coronavirus have been recorded. On February 10, it decreased to 3 thousand. Chinese authorities believe that the daily number of infected people stabilizes and by the beginning of March, it will start declining. The Japanese yen was considered as a safe haven asset by investors. A decrease in global risks may reduce demand for it. For the same reason, world oil demand may increase. The OPEC + Technical Committee recommended to extend the current reduction in oil production by the cartel countries and independent producers in the amount of 1.7 million barrels per day and increase it by 600 thousand to 2.3 million barrels per day. However, a final decision has not been made yet.
Summary of technical analysis
|Buy stop||Above 57,5|
|Stop loss||Below 53,5|
Market Analysis provided by IFCMarkets
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