• Improving risk sentiment dents JPY’s safe-haven status and triggers short-covering.
• A goodish bounce in the US bond yields underpin USD and remained supportive.
The USD/JPY pair built on its goodish intraday up-move and climbed to fresh weekly tops in the last hour, with bulls now aiming to reclaim the key 110.00 psychological mark.
After an early European session dip to mid-109.00s, a sudden turnaround in the risk sentiment undermined the Japanese Yen’s safe-haven demand and helped the pair to catch some aggressive bids.
The greenback got an additional boost following the release of upbeat US economic releases – housing market data, weekly jobless claims and Philly Fed Manufacturing Index, and kept fueling the bullish move.
Adding to this, possibilities of some short-term trading stops being triggered on a sustained move beyond 100-hour SMA further collaborated towards accelerating the move since the early North-American session.
It would now be interesting to see if the pair is able to capitalize on the recovery move or confronts some resistance at higher levels as investors’ focus remains glued to fresh developments surrounding the US-China trade dispute.