USD/JPY trims a part of early losses, finds decent support near 103.00 mark
|- USD/JPY remained under some selling pressure for the second straight session on Thursday.
- The JPY continues to benefit from the global flight to safety amid the prevailing risk-off mood.
- Sliding US bond yields undermined the USD demand and added to the intraday selling bias.
The USD/JPY pair recovered over 100 pips from the Asian session lows, albeit struggled to capitalize on the move and find acceptance above the 104.00 round-figure mark.
The pair added to the previous session's losses and remained under some selling pressure for the second consecutive session on Thursday amid the prevailing risk-off mood, which tends to underpin the Japanese yen's perceived safe-haven demand.
Coronavirus jitters benefitted safe-haven JPY
The global risk sentiment took a sharp knock after the World Health Organization on Wednesday declared the novel coronavirus a global pandemic. Adding to this, US President Donald Trump suspended all travel from Europe for 30 days in order to fight the virus outbreak.
The anti-risk flow was evident from a sea of red across the global equity markets and reinforced by a fresh leg down in the US Treasury bond yields. This coupled with fading optimism over Trump's proposed fiscal stimulus kept the US dollar bulls on the defensive.
The pair eroded a major part of Tuesday's strong intraday upsurge of nearly 400 pips but managed to find some support just ahead of the 103.00 round-figure mark. Meanwhile, the intraday bounce lacked any obvious catalyst and hence, runs the risk of fizzling out rather quickly.
Moving ahead, there isn't any major market moving economic data due for release from the US. Hence, any developments surrounding the coronavirus saga might continue to act as an exclusive driver of the broader market risk sentiment 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.