The USD/JPY pair extended its steady intraday downtick through the early European session and refreshed daily lows, around the 106.25-20 region. The pair failed to capitalize on the previous day's strong positive move to over one-week tops and met with some fresh supply on Wednesday. A modest pullback in the equity markets provided a modest lift to the Japanese yen's safe-haven status and was seen as one of the key factors exerting some pressure on the USD/JPY pair.
Tuesday's disappointing US consumer confidence index fueled worries about the US economic recovery and took its toll on the global risk sentiment. However, the optimism over a potential treatment/vaccine for the highly contagious disease, along with easing concerns about the US-China standoff might help limit any deeper losses.