Citing people familiar with the matter, Bloomberg reports the Bank of Japan (BOJ) is likely to downgrade its economic assessment due to the expected impact of the coronavirus outbreak, when it meets for its monetary policy review on March 18 and 19.

The sources said: “The downgrade will probably not translate into additional BOJ action, but be wary that it does add pressure, especially with a strengthening yen.”

USD/JPY unfazed

The bid tone around the Japanese yen remains unaffected by the above negative headlines, as USD/JPY trades 0.18% lower at 107.32, mainly weighed down the losses in the S&P 500 futures.

The sentiment remains fragile amid looming coronavirus risks, as the numbers of new virus cases rise worldwide.