- USD/JPY picks up fresh bids in early Europe on US dollar buying.
- Safe-haven support for the US dollar intact amid dour market mood.
- Coronavirus-linked updates to headline amid quiet US data docket.
Amid a renewed US dollar buying wave seen across the board, USD/JPY broke the Asian consolidative phase to the upside, as the bulls looked to regain the 108 handle. At the time of writing, the spot adds 0.34% on a daily basis to trade at 107.87.
The dour market mood extends into Europe and revives the safe-haven demand for the greenback against its main competitors, with the US dollar index now rising 0.22% at 100.00.
A lack of clarity on the coronavirus impact on the world economies as well as on how the easing of the lockdown measures will pan out keeps the investors on the edge, as the new infections continue to rise globally.
The US currency also cheers the news that the New York Federal Reserve (Fed) said on Friday that it would cut its Treasury purchases by half to $75 billion this week, from $150 billion last week.
The spot also finds support from a slump in the Japanese exports for March, which weighs down on the yen. The March exports logged the biggest year-on-year decline since July 2016, adding to the worries over the economic fallout of the virus outbreak.
Looking ahead, the US dollar dynamics and the risk-sentiment driven by the virus updates will have a significant influence on the major, in absence of the first-tier macro news from the US this Monday.
USD/JPY technical levels to watch
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