USD/JPY slides to multi-day lows, farther below 110.00 mark

• USD/JPY comes under some selling pressure amid reviving safe-haven demand.
• The intraday slide seemed rather unaffected by the latest BoJ policy update.

The USD/JPY pair consolidated intraday losses and was seen oscillating in a narrow trading band below the key 110.00 psychological mark.

The pair came under some selling pressure during the Asian session on Tuesday and finally broke down of its two-day-old consolidative trading range amid reviving demand for perceived safe-haven assets, including the Japanese yen.

Reviving safe-haven demand weighed on USD/JPY

Concerns of the corona-virus outbreak in China led to a turnaround in the global risk sentiment on Tuesday. This was evident from a negative trading mood around equity markets and reinforced by a downfall in the US Treasury bond yields.

The Japanese yen further benefitted from the Bank of Japan's upwardly revision of the GDP growth for fiscal 2019/20 and 2020/21. Earlier, the Japanese central bank decided to keep monetary policy steady and maintain 10-year JGB yield target around 0%.

The bearish pressure remained unabated despite some the BoJ Governor H. Kuroda's dovish comments at the post-meeting press conference, saying that the central bank would not hesitate to ease further if momentum towards price target is at risk.

It will now be interesting to see if the pair is able to attract any meaningful buying at lower levels or extends the ongoing corrective slide from multi-month tops amid absent relevant market moving economic releases from the US.

Technical levels to watch