USD/JPY holds weaker below 110.00 mark amid fresh coronavirus concerns
- USD/JPY retreats from three-week tops amid reviving safe-haven demand.
- Weaker US bond yields weighed on the USD and added to the selling bias.
- Investors now look forward to the latest US CPI print for a fresh impetus.
The USD/JPY pair edged lower through the early European session on Thursday and is currently placed near the lower end of its daily trading range, around the 109.75 region.
The pair once again failed to find acceptance above the key 110.00 psychological mark and came under some renewed selling pressure on Thursday. The pair witnessed a turnaround from three-week tops, set on Wednesday, and was being weighed down by reviving safe-haven demand for the Japanese yen.
USD/JPY weighed down by risk-off mood
Concerns over the outbreak of the deadly coronavirus resurfaced on Thursday after China's Hubei province reported a sharp jump in the number. The news weighed on investors' sentiment and led to a fresh wave of the global risk-aversion trade, which eventually boosted demand for traditional safe-haven assets.
The risk-off mood was further reinforced by a pullback in the US Treasury bond yields, which kept the US dollar bulls on the defensive and further collaborated to the pair's retracement slide on Thursday. The pair seems to have snapped three consecutive days of winning streak as traders now look forward to the US macro data for a fresh impetus.
Thursday's US economic docket highlights the release of the latest consumer inflation figures, which will play a key role in influencing the USD price dynamics and produce some meaningful trading opportunities later during the early North-American session.
Technical levels to watch