- USD/JPY meets with some fresh supply amid reviving safe-haven demand for the JPY.
- The USD stood tall amid worries over the coronavirus crisis and might help limit losses.
- Traders now look forward to the US economic releases for some meaningful impetus.
The safe-haven Japanese yen strengthened across the board and dragged the USD/JPY pair to daily lows, around the 107.50-45 region in the last hour.
Following a brief consolidation through the early part of Thursday trading action, the pair came under some selling pressure since the early European session and has now dropped to the lower end of its weekly trading range.
Despite the latest optimism over the passage of another $484 billion US economic package by the US Senate, investors remain concerned the global economy will remain weak for some time, even once the lockdowns are eased.
The market worries were further fueled by Thursday’s dismal PMI releases from the Eurozone and the UK, which eventually led to some nervousness in the market and provided a modest lift to the Japanese yen’s safe-haven status.
Meanwhile, the US dollar stood tall and continued benefitting from its status as the global reserve currency. This coupled with a goodish pickup in the US Treasury bond yields might lend additional support to the greenback and help limit deeper losses.
Traders now look forward to the US economic docket, highlighting the release of flash Manufacturing PMI and Initial Weekly Jobless Claims. The data might act as a fresh catalyst that might help determine the pair’s next leg of a directional move.
Technical levels to watch