USD/JPY continues to move sideways below 110.00, eyes on Wall Street

• USD/JPY is fluctuating in a tight range below 110.00.
• Wall Street's main indexes look to open in the negative territory.
• 10-year US Treasury bond yield is edging lower on Friday.

After failing to hold above 110.00 and closing the day virtually unchanged on Thursday, the USD/JPY pair seems to have gone into a consolidation phase on Friday. Although the pair tested 110.00 during the Asian trading hours, the risk-averse market environment caused it to reverse its direction. As of writing, USD/JPY was flat on the day at 109.70.

Flight to safety helps JPY stay resilient 

Reflecting the dismal market mood, major European equity indexes trade in the negative territory. Additionally, the S&P Futures are down 0.45% on the day, suggesting that Wall Street's main indexes are likely to remain on the back foot ahead of the weekend.

Moreover, the 10-year US Treasury bond yield is losing 0.5%, making it difficult for USD/JPY to stage a meaningful rebound.

On the other hand, the US Dollar Index, which closed the first four days of the week in the positive territory, is trading at its strongest level since November at 93.65, rising 0.1% and helping USD/JPY limit its losses.

There won't be any high-tier macroeconomic data releases in the remainder of the day and the risk perception is expected to drive USD/JPY's action.

Technical levels to watch for