USD/JPY reverses lower from 104.80 ahead of President Trump's address to the nation

• USD/JPY drops from 104.80 to 104.36 as yen draws bids, tracking losses in the equities. 
• Australia's market is reporting a 3% drop despite the fiscal stimulus announcement. 
• President Trump is expected to detail the stimulus plan in his address to the nation at 01:00 GMT.

The anti-risk Japanese yen continues to draw bids on sustained risk aversion in the equity markets, keeping recovery rallies in USD/JPY under the check. 

Rejected at 104.80

USD/JPY's bounce from Wednesday's low of 104.09 ran out of steam near 104.80 an hour ago. The pair is currently trading around 104.45, having hit a low of 104.36 soon before press time.

The decline from highs near 104.80 could be associated with the losses in the Asian equity markets. Australia's benchmark equity index ASX 200 is currently down nearly 3%, while Japan's Nikkei is shedding over 2%. Further, the futures on the S&P 500 are currently reporting a 0.6% loss. 

The Australian government announced an A$17.6 billion fiscal stimulus earlier Thursday. So far, however, that has failed to bring cheer to the domestic equity markets. 

Focus on Trump's speech

In his scheduled address the nation at 01:00 GMT, President Trump is expected to detail the fight against global coronavirus outbreak. 

The President is expected to take a series of executive actions to deliver economic relief from the coronavirus, including paid sick leave for hourly workers and extending tax-filing deadlines for small businesses. according to Bloomberg. 

Meanwhile, House Speaker Nancy Pelosi is pressing ahead with plans to vote on a response. The Fed is ramping up cash injections to as much as $505 billion in a bid to keep short-term financing markets functioning through quarter-end.

Both the equities and USD/JPY could suffer deeper declines if the much-awaited US fiscal stimulus announcement is low on details and falls short of expectations. 

Technical levels