USD/JPY struggles for a firm direction, holds steady below 109.00 mark

• USD/JPY reversed an early dip to mid-108.00s, albeit lacked any strong follow-through.
• Investors refrained from placing fresh bets amid worries over the coronavirus pandemic.

The USD/JPY pair struggled to capitalize on its intraday recovery move and is currently placed in the neutral territory, just below the 109.00 round-figure mark.

Investors turned cautious after the New York state – the centre of the US outbreak – and the United Kingdom announced their highest daily death toll on Tuesday, which provided a modest lift to the Japanese yen’s safe-haven status.

The pair extended the previous day’s downfall and witnessed some follow-through weakness during the early Asian session on Wednesday, albeit managed to find some support near mid-108.00s amid a strong pickup in the US dollar demand.

The pair recovered around 50 pips from daily swing lows but lacked any strong follow-through as traders refrained from placing aggressive bets, rather preferred to wait on the sidelines ahead of the release of the FOMC meeting minutes.

Apart from this, the key focus will remain on the overall coronavirus pandemic situations, which might continue to influence the broader market risk sentiment and play a key role in driving the pair’s momentum amid absent relevant market-moving economic releases.

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