- USD/JPY lacked any firm direction and seesawed between tepid gains/minor losses.
- The JPY benefitted from reviving demand for safe-haven assets amid coronavirus crisis.
- The USD maintained its strong bid tone following the release of stronger ADP report.
The USD/JPY pair extended its sideways consolidative price action and remained confined in a narrow trading band around mid-107.00s post-US ADP report.
A combination of diverging forces failed to provide any meaningful impetus to the major and led to a subdued/range-bound trading through the early North-American session on Wednesday.
Persistent worries over the economic fallout from the coronavirus pandemic triggered a fresh wave of the global risk-aversion trade and underpinned the Japanese yen’s perceived safe-haven demand.
The risk-off mood was further reinforced by a fresh leg down in the US Treasury bond yields, albeit the negative factor, to a larger extent, was offset by a strong buying interest around the US dollar.
The greenback maintained its strong bid tone following the release of ADP report, which showed that private-sector employment decreased by 27K in March as against 150K expected.
Meanwhile, the market reaction turned out to be rather muted as the focus remains on developments surrounding the coronavirus saga, which remains a key driver of the broader risk sentiment.
Technical levels to watch