Breaking: USD/JPY cracks 109.00 as risk sentiment worsens
|The buying interest around the safe-haven yen remains unabated in Friday's Asian trading, knocking-off the USD/JPY pair to the weakest levels in three weeks below the 109 level.
The spot continues to face a double whammy, with a March Fed rate cut expectations weighing heavily on the US Treasury yields and dollar on one hand.
On the other hand, the yen continues to draw bids amid a persistent risk-off environment, induced by growing fears over a coronavirus pandemic, which will have a significant negative impact on the global economy.
The rout in the global equities extends alongside a 0.40% drop in the S&P 500 futures, reflecting the market's risk perception, as the virus outbreak spreads faster outside China and the World Health Organization (WHO) said that it has reached a "decisive point" and has "pandemic potential".
Meanwhile, the benchmark US 10-year Treasury yields dive over 3% amid a 99.2% chance of a Fed rate cut in March.
USD/JPY technical levels to watch out
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