USD/JPY eases from tops, still comfortable above 107.00 mark
|- USD/JPY gained some positive traction on Thursday but lacked any strong follow-through.
- Positive US equity futures weighed on the JPY’s safe-haven status and remained supportive.
- Sliding US bond yields, mildly weaker USD capped gains amid persistent coronavirus worries.
The USD/JPY pair retreated around 30 pips from the Asian session tops, albeit has still managed to hold comfortably above the 107.00 mark.
The pair gained some positive traction during the early part of Thursday trading action and moved away from two-week lows set in the previous session but failed to capitalize on the attempted recovery move.
Slight improvement in the global risk sentiment, as depicted by a recovery in the US equity futures, undermined the Japanese yen's safe-haven demand and provided some intraday lift to the major.
However, mounting fears over the economic fallout from the coronavirus pandemic and a fresh leg down in the US Treasury bond yields capped further gains, rather prompted some fresh selling at higher levels.
Investors remained concerned about the ever-increasing coronavirus cases, especially after the White House medical experts warned that as many as 240,000 Americans might die from the respiratory disease.
Against the backdrop of prolonged economic uncertainty, a modest US dollar weakness – weighed down by sliding US bond yields – further contributed to the intraday pullback from levels just above mid107.00s.
Moving ahead, market participants look forward to the release of the US initial weekly jobless claims data, which might influence the USD price dynamics and produce some meaningful trading opportunities.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.