USD/JPY: 110.00 – a tough nut to crack ahead of US NFP
- USD/JPY bulls cautious amid negative Treasury yields, S&P 500 futures.
- Risk-off losing steam heading into European trading?
- Markets await US NFP data amid rising coronavirus concerns.
The market mood is seen improving slightly in early Europe, allowing a bounce in the USD/JPY pair back to test the 110 level, as investors find some respite from the comments by the Japanese Chief Cabinet Secretary Suga.
Suga said that Japan will roll out emergency policies to combat the coronavirus negative economic impact as soon as next week. This comes after the numbers of confirmed virus cases in China and Japan rose while the Japanese Economy Minister Nishimura said that the outbreak is beginning to affect the regional economies.
The anti-risk yen defended minor bids in Asia, having knocked-off USD/JPY to a session low of 109.82, as the risk-off action dominated across the markets, indicated by losses in the US equity futures and Treasury yields. Meanwhile, a minor corrective slide seen in the US dollar across its main competitors also added to the weakness in the major.
Despite the latest uptick, the pair struggles to chew the offers at the 110 barrier and reverts to the familiar trading range around 109.90 region. The extension of the losses in the US rates are seen capping the USD/JPY bounce while the downside remains cushioned by a fresh round of dollar buying across the board.
All eyes now remain on the US Non-Farm Employment and fresh China coronavirus update for the next direction in the spot.
USD/JPY Technical levels to watch