“¢ The USD bearish pressure now seems to have eased a bit.
“¢ Fading safe-haven demand provides an additional boost.
The USD/JPY pair continued with its steady climb and moved further beyond the key 110.00 psychological mark, recovering around 60-65 pips from near two-month lows.
Investors looked past the US President Donald Trump’s overnight remarks, with a modest US Dollar rebound helping ease the bearish pressure surrounding the major and bounce off an intraday low level of 109.77.
Adding to this, continuous improvement in investors’ appetite for riskier assets, as depicted by a positive trading sentiment around equity markets, dented the Japanese Yen’s safe-haven appeal and provided an additional boost to the pair’s goodish intraday rebound.
Bulls also seemed to track a goodish pickup in the US Treasury bond yields and the pair kept grinding higher towards mid-110.00s, or fresh session tops through the mid-European session.
It would now be interesting to see if the pair is able to build on the positive momentum or the uptick once again turns out to be an opportunity for initiating fresh bearish positions amid absent market moving economic releases.
Technical levels to watch
Any further up-move is likely to confront immediate resistance near the 110.65-70 region, above which the pair is likely to aim towards reclaiming the 111.00 handle. On the flip side, the 110.00 handle now becomes an immediate support to defend, which if broken might now turn the pair vulnerable to extend the downfall towards testing 109.40-35 support area.
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