USD/JPY stays in red below 106 ahead of data

• 10-year US Treasury bond yield moves sideways on Friday.
• US Dollar Index extends consolidation above 97.50 handle.
• USD/JPY pair remains on track to post losses for second straight week.

The USD/JPY pair failed to make a decisive break above the 106 mark after testing that level earlier in the day and is feeling a modest selling pressure since then. As of writing, the pair was trading at 105.80, losing 0.25% on a daily basis. With today's retreat, the pair remains on track to close the second straight week with losses.

US T-bond yields go into consolidation

Although the 10-year US Treasury bond yield, which slumped to its lowest level since October 2016 on Wednesday, seems to be staying relatively calm on Friday, pointing out to neutral market sentiment. In the meantime, the S&P 500 Futures is losing nearly 0.5% on the day to suggest that Wall Street's main indexes are likely to start the day in the red, possibly ramping up the demand for safe-havens in the second half of the day.

Earlier today, the Bank of Japan announced that it will be buying JPY 360 billion of bonds maturing in three to five years, lowers from JPY 20 billion in the previous purchase. However, this move is seen as part of the BoJ's routine operation and didn't have a significant impact on the JPY.

Later in the session, the US Bureau of Labor Statistics' Producer Price Index data will be looked upon for fresh impetus.

Technical levels to watch for