USD/JPY spikes to fresh session tops, beyond 105.00 mark amid broad-based USD strength

• USD/JPY rallied over 200 pips from intraday lows amid resurgent USD demand.
• The momentum seemed unaffected by the ongoing round in the equity markets.

The USD/JPY pair jumped to fresh session tops, with bulls now looking to extend the momentum further beyond the key 105.00 psychological mark.

A strong pickup in the US dollar demand, despite plunging US Treasury bond yields, was seen as one of the key factors behind the pair's strong intraday rally of over 200 pips from the vicinity of the 103.00 round-figure mark.

The momentum seemed unaffected by another round of a brutal selloff across the global equity markets, which tends to underpin the Japanese yen's perceived safe-haven demand. In fact, the benchmark US indices triggered the level one circuit breaker of 7%, albeit did little to hinder the pair's move up.

The global risk sentiment took a hit after the World Health Organization on Wednesday declared the novel coronavirus a global pandemic. The already weaker sentiment deteriorated further in the wake of the US President Donald Trump's decision to ban all travel from Europe for 30 days.

As the focus remains on any developments surrounding the coronavirus saga, it will now be interesting to see if the pair is able to capitalize on the momentum or runs out of the steam near weekly tops set on Tuesday, around the 105.90-106.00 supply zone.

Technical levels to watch