USD/JPY retreats farther from 2-week tops, below mid-110.00s
| • A further escalation in the US-China trade tensions underpins JPY’s safe-haven demand.
• Some renewed USD buying interest does little to support or stall the steady intraday slide.
• Investors now look forward to FOMC meeting minutes for a fresh directional impetus.
The USD/JPY pair extended its steady intraday decline and dropped to fresh session lows in the last hour, eroding a part of the previous session's strong up-move to two-week tops.
The prevalent cautious mood around equity markets, amid a further escalation in the recent US-China trade tensions, underpinned the Japanese Yen's relative safe-haven status and turned out to be one of the key factors exerting some fresh downward pressure.
The global risk sentiment took a hit after the Trump administration was reported to blacklist Chinese surveillance technology firm - Hikvision and is also considering cutting off the flow of vital American technology to as many as five Chinese companies.
Bearish traders seemed rather unaffected by Wednesday's release of Japanese trade balance data, showing that exports contracted for the fifth month in April, with some renewed US Dollar strength also doing little to provide any meaningful boost.
Currently trading around the 110.35 region, testing session lows, market participants now look forward to Wednesday's important release of FOMC meeting minutes, which might influence the near-term USD price dynamics and provide a fresh directional impetus.
Technical levels to watch
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