Breaking: USD/JPY breaches 110.00, as US dollar slumps with Treasury yields

• USD/JPY remains heavy amid risk-off at full steam.
• The bulls lose nearly 120 pips from the Asian highs.
• Focus on the US Senate vote again on coronavirus economic package bill.

The selling interest around the US dollar remains unabated across the board, knocking-off USD/JPY back below 110.00, down nearly 0.70% on the day.

Markets ignore greenback’s dash for cash status, as the US currency gets sold-off into a sharp decline in the US 10-year Treasury yields, as risk-aversion grips Asia following the US Senate’s failure to advance the coronavirus rescue package bill.

Democrats and Republicans remained split, as the failed vote raised pressure to reach a deal, especially in light of amplifying coronavirus risks in the US, which hit the appetite for risk assets.

The US benchmark 10-year Treasury yields are down 13% at 0.815%, as the US dollar index drops 0.60%, reverting towards the daily low of 101.95. S&P 500 futures hit the lower circuit breaker at open, now losing 4.14%.

Looking ahead, the pair will remain at the mercy of the risk sentiment and US dollar price-action, as all eyes remain on the US Senate’s second vote on the same US Coronavirus economic relief package bill, scheduled later on Monday.

USD/JPY technical levels to watch