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USD/JPY keeps the red near 2-week lows, below 110.00 mark post-US macro data

  • The US GDP growth during the fourth quarter of 2019 stood at 2.1% annualized paced.
  • Better-than-expected US Durable Goods Orders also did little to provide any respite.
  • USD/JPY continues to be weighed down by a flight to safety amid coronavirus fears.

The USD/JPY pair maintained its heavily offered tone near weekly lows, below the key 110.00 psychological mark and failed to gain any respite from the US macro releases.

The pair struggled to capitalize on the previous day’s modest positive move and witnessed some fresh selling on Thursday. Growing concerns over the global outbreak of the deadly coronavirus continued weighing on investors’ sentiment and provided a strong boost to the Japanese yen’s safe-haven status.

Bearish pressure remains unabated

The global flight to safety forced the US Treasury bond yields to prolong their recent decline and tumbled to fresh all-time lows on Thursday. This led to some follow-through US dollar weakness on Thursday and further contributed to the pair’s ongoing downfall – the fourth in the previous five.

The selling pressure surrounding the greenback remained unabated following the release of mostly in line US Q4 GDP print and better-than-expected Durable Goods Orders, showing a fall of 0.2% vs. 1.5% expected. Adding to this, the previous month’s reading was also revised higher, albeit failed to impress the bulls.

With the broader market risk sentiment turning out to be an exclusive driver of the pair’s momentum, market participants will keep a close eye on fresh developments surrounding the coronavirus saga in order to grab some meaningful trading opportunities.

Technical levels to watch

 

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