The steepness of the pair's decline documents the real panic in the financial markets. The 10-year US yield halved in just two weeks from 1.6% to 0.8%, which put pressure on the greenback broadly.
It's hard to define any meaningful supports in decline like this. However, it looks like the pair could slow down somewhat near the psychological level of 105.00, where August/September' lows are located. But if this level is taken out as well, we could see a sharp deterioration toward the 100 mark.
On the upside, the resistance seems to be near 106.50, and as long as the greenback remains below it, the short and medium-term outlooks appear bearish.
Sentiment still seems very negative, and intraday rallies should be sold as long as the virus situation doesn't improve. Moreover, markets are already betting that the Fed will cut rates by an additional 50 bps at its March meeting, which might send the USDJPY pair below the mentioned 105
support.
