USD/JPY hits fresh weekly lows, slides further below 110.00 mark

• The prevailing risk-off mood provided a fresh boost to the JPY’s safe-haven status.
• USD/JPY comes under some fresh selling pressure and weakens below 110.00 mark.
• Investors now look forward to important US macro data for a fresh trading impetus.

The USD/JPY pair continued losing ground through the early European session and fell below the key 110.00 psychological mark, hitting fresh weekly lows in the last hour.

Following the previous day's modest intraday recovery and a subsequent pullback from the 110.70 region, the pair met with some fresh selling pressure on Thursday amid the prevailing risk-off mood.

Bearish pressure remains unabated

Growing concerns over the outbreak of the deadly coronavirus beyond and its impact on the world economy continued weighing on investors' sentiment and benefitted the Japanese yen's safe-haven status.

The global flight to safety was further reinforced by an extension of the recent downfall in the US Treasury bond yields, which kept the US dollar bulls on the defensive and added to the intraday selling bias.

The downfall, marking the third day of a negative move in the previous four, has now dragged the pair to fresh weekly lows and might now be eyeing to test 50-day SMA support near the 109.65-60 area.

Sustained weakness below the mentioned support might be seen as a key trigger for bearish traders and set the stage for an extension of the recent sharp pullback from multi-month tops set last week.

Moving ahead, market participants now look forward to the US economic releases – revised Q4 GDP print and Durable Goods Orders – in order to grab some meaningful trading opportunities.

Technical levels to watch