- N. Korean headlines prompt some safe-haven buying and exert some pressure.
- The USD stood tall amid tempered Fed rate cut bets and helped limit losses.
- Positive trade-related development further lends support ahead of US data.
The USD/JPY pair traded with a mild negative bias through the early European session on Thursday, albeit remained well within the previous session’s broader trading range.
The pair on Wednesday managed to reverse a dip to sub-108.00s but failed to capitalize on the move, rather met with some fresh supply amid reviving safe-haven demand after North Korea fired two short-range missiles into the sea early on Thursday.
Despite a modest pullback, the pair has managed to hold its neck above the 108.00 handle and was being supported by the prevalent bullish sentiment surrounding the US Dollar as the focus remains on the highly anticipated central bank meetings.
This coupled with a positive trade-related development, wherein a White House statement confirmed that top US negotiators will meet their Chinese counterparts starting July 30, helped limit any meaningful downfall, at least for the time being.
Later during the early North-American session, the US economic docket – highlighting the release of durable goods orders data for June, will influence the USD price dynamics and contribute towards producing some short-term trading opportunities.
Technical levels to watch
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