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  • USD/JPY keeps the losses as coronavirus-led risk-off continues.
  • The US 10-year treasury yields, equity futures keep dwindle as President Trump failed to hide the fears.
  • US data, Coronavirus task force meeting in the spotlight.

USD/JPY seesaws around 110.10, down 0.30%, following its brief dip to the intra-day low of 109.9950, ahead of the European open on Thursday. While the broad risk-off due to the coronavirus (COVID-19) outbreak keeps the Japanese yen strong, the latest south-run of the US treasury yields and equities keep traders away from the US dollar.

That said, the US 10-year treasury yields dropped to the fresh record low of 1.299% before few minutes whereas the S&P 500 Futures lose 1.43% to 3,065 by the time of writing.

US President Donald Trump tried to placate traders during this press conference concerning the Chinese epidemic on Wednesday night. However, his remarks that the virus will probably spread in the US, as well as announcement of the US coronavirus task force meeting at 19:30 GMT today, kept the risk-off alive.

John Hopkins CSSE portrays that the number of confirmed cases outside China rose from roughly 2.75K to 3.2K, marking the biggest daily increase on record. The same increases the fears of a wide outbreak of the COVID-19 while the latest numbers from South Korea have been worries. Furthering the risk aversion could be many firsts in the coronavirus list during the last 24 hours.

Traders will now look towards the US data for intermediate relief from the coronavirus-led risk-off, if not then comments from the Chicago Fed’s Charles Evans will be closely watched.

Technical Analysis

The 111.00 holds the key to the pair’s run-up to challenge the monthly high near 112.20. Sustained trading below the same could gradually drag the quote towards 109.70 and 109.50 numbers to the south.