USD/JPY bears catch a breath above 102.00, coronavirus keeps the driver’s seat

• USD/JPY consolidates losses following the heavy fall.
• Trade sentiment remains under pressure amid global measures to tame coronavirus.
• The US equity futures remain on the back foot after Wall Street benchmark jumped into the sea of red.
• Positive signals for the COVID-19 become necessary to restore market confidence.

The USD/JPY pair’s pullback from 101.18 fails to recall the buyers as the quote remains under pressure around 102.10 amid the early Asian session on Tuesday. While government measures sparked concerns over the global supply chain, the latest list of the US states declaring emergencies and news from Italy keep risk-tone heavy.

Coronavirus remains as the key risk driver…

Monday’s magnified risk-off seems to have failed to disappoint the market bears as coronavirus fears continue to weigh on the trading sentiment. The latest addition of the Rhode Island, New Jersey and Ohio into the list of the US states declaring emergencies due to the coronavirus (COVID-19) seems to strengthen the claims. The reason being the US equity futures’ downbeat performance following the circuit breaker moves the previous day.

The government in Italy has restricted movements across the nation while Spain’s Health Minister signaled speedy transmission of the disease. Over the counter, Canada, the US and Japan showed readiness to counter the implications of the virus but marked no major efforts.

That said, the US 10-year treasury yields remain on the back foot around 0.50% while Wall Street benchmarks encroached the official bearish trend by the end of their trading on Monday.

The US Coronavirus Task Force will soon cross the wires while offering the briefs of the disease and the administration’s performance.

Additionally, the markets should pay attention to any efforts to stem the illness while looking for any recovery in trade sentiment.

Technical Analysis

While 102.85/90 and 103.30 acts as the immediate upside barriers, 100.00 round-figure can act as the key downside support.