The USD/JPY pair now seems to have entered a bearish consolidation phase and was seen oscillating in a range, below the 107.00 mark through the Asian session. The pair once again managed to find some support near the 106.65 horizontal zone amid signs of stability in the equity markets, which undermined the safe-haven Japanese yen. The global risk sentiment remains well supported by the latest optimism over a potential vaccine for the highly contagious coronavirus.
On the other hand, the US dollar struggled to gain any meaningful traction and was being pressured by worries that the second wave of the coronavirus infections could delay the US economic recovery. Adding to this, the impasse over the next round of US economic stimulus measures further kept the USD bulls on the defensive.