Japanese Yen Higher Amid Risk Aversion

The Japanese yen climbed against its major counterparts in the Asian session on Tuesday, as Asian shares fell following the weak cues overnight on Wall Street after crude oil futures turned negative overnight for the first time in history indicating the fall in energy demand due to the coronavirus pandemic.

U.S. crude prices bounced back into positive territory after crashing below $0.00 on Monday.

Reports that North Korean leader Kim Jong Un was in critical condition after undergoing cardiovascular surgery last week also dampened sentiment.

The global Covid-19 death toll has topped 170,000, with the U.S. accounting for the highest number of infections and fatalities in the world, according to the Johns Hopkins University.

The yen strengthened to 116.33 against the euro, its highest level since March 12. The yen is likely to face resistance around the 112.00 region, if it gains again.

After falling to 107.79 at 8:45 pm ET, the yen reversed direction and hit a 4-day high of 107.40 against the greenback. On the upside, resistance is likely seen near the 105.00 level.

The yen firmed to 133.18 against the pound, setting a 3-week high. The next likely resistance for the yen is seen around the 128.00 level.

The yen spiked up to near a 3-week high of 110.62 against the franc, from Monday's closing value of 111.17. Immediate resistance for the yen is possibly seen around the 108.00 level.

The yen moved up to near a 3-week high of 75.82 against the loonie, near 2-week high of 67.57 against the aussie and a 5-day high of 64.29 against the kiwi, from its early lows of 76.33, 68.36 and 65.13, respectively. The yen may face resistance around 73.00 against the loonie, 65.00 against the aussie and 62.00 against the kiwi.

Looking ahead, German ZEW economic sentiment index for April is due in the European session.

Canada retail sales for February and U.S. existing home sales for March are set for release in the New York session.