USDJPY tests 110 amid USD shortage

Traders have been massively buying the US dollar over the previous days, which sent the dollar index to new record highs. The USDJPY pair was trading 1.5% stronger during the US session on Thursday, testing the 110 threshold to the upside. 

Usually, the Japanese yen strengthens in times of panic, but this dime it is different as the upcoming crisis will lead to some massive defaults and debt write-offs. Thus, everyone needs the US dollar right now as most of the world's debt is denominated in the US dollar. The cash is king in times like these.

The US government has approved that all US citizens will get a check of 1000 USD, with children getting half the amount, which is usually dubbed as "helicopter money." Also, the Fed is throwing liquidity at markets, but so far, it seems that the market is most nervous about the economic stop and god knows for how long. It appears that monetary policy can't fix this problem.

Should the 110 level be breached, we could see a quick rally toward this year's highs of 112.00. Alternatively, if the pair starts to decline, the first more robust support could be located at around 108.00.
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