USD/JPY keeps the red below 110.00 mark, moves little post-US CPI
- Renewed concerns over coronavirus prompted some heavy selling around USD/JPY.
- Sliding US bond yields weighed on the USD and did little to ease the bearish pressure.
- Traders seemed rather unaffected by mixed US consumer inflation figures for January.
The USD/JPY pair maintained its heavily offered tone, around the 109.75 region and failed to gain any respite from the US macro data.
Having struggled to find acceptance above the key 110.00 psychological mark, the pair came under some intense selling pressure on Thursday and surrendered its recent gains recorded over the past three trading sessions to three-week tops
USD/JPY weighed down by risk-off mood
A turnaround in the global risk sentiment, led by renewed concerns over the outbreak of the deadly coronavirus, provided a goodish lift to the Japanese yen's perceived safe-haven status and exerted some heavy pressure on the major.
The risk-off mood was further reinforced by a fresh leg of a downfall in the US Treasury bond yields, which coupled with a strong upsurge in the British pound kept the US dollar bulls on the defensive and did little to lend any support.
The USD failed to gain any respite following the release of mixed US consumer inflation figures for January. In fact, the headline CPI unexpectedly edged higher to 0.1% MoM during the reported month, while the yearly rate climbed to 2.5% from 2.3% previous and 2.4% expected.
With Thursday's key US macro data out of the way, the broader market risk sentiment might continue to influence the JPY's safe-haven demand and will play a key role in producing some meaningful trading opportunities around the major.
Technical levels to watch