USD/JPY is challenging fresh ten-day lows just below the 107 mark, as the bears remain in command amid intensifying risk-off sentiment. The downbeat market mood is likely to extend into Europe, as reflected by the accelerating losses in the S&P 500 futures. The fresh leg down in the US stock futures is helping boost the safe-haven bids for the yen, which has prompted USD/JPY to breach the 107 thresholds.

Meanwhile, the US dollar continues to attract the safe-haven flows against its main peers, collaborating with the weakness in the major. The record rise in coronavirus cases in the US doused hopes of a V-shaped recovery and spooked the investors.