USD/JPY consolidates in a range below 110.00 mark
- USD/JPY failed to capitalize on the overnight bounce from multi-day lows.
- Coronavirus concerns, sliding US bond yields continued to cap the upside.
- The USD bullish tone does little to provide any impetus ahead of US data.
The USD/JPY pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the Asian session on Friday.
The pair failed to capitalize on the previous session's late rebound from multi-day lows and was seen oscillating in a narrow trading band below the key 110.00 psychological mark. Some stability in the global risk sentiment undermined the Japanese yen's safe-haven demand and extended some support to the major.
Investors preferred to stay on the sidelines
The downside was further cushioned by the prevailing strong bullish tone surrounding the US dollar, albeit concerns about the economic impact of the deadly coronavirus held investors from placing bullish bets. This coupled with sliding US Treasury bond yields further collaborated towards capping the upside.
It is worth reporting that market worries over the outbreak of the virus in China resurfaced on Thursday after Hubei province reported a surge in the number of people infected, as the death toll neared 1,400.
Hence, it will be prudent to wait for a sustained break through the intraday trading range before positioning for any meaningful direction. Market participants now look forward to the release of the US retail sales data and the Michigan Consumer Sentiment Index for some meaningful trading impetus.
Technical levels to watch