“¢ The risk-on mood weighs heavily on the JPY’s relative safe-haven status.
“¢ Bulls seemed unaffected by fresh weakness around USD/US bond yields.
The USD/JPY pair spiked to over five-week tops in the last hour, with bulls now aiming for a move beyond the 112.00 round figure mark.
The pair built on the overnight strong upsurge and continued gaining positive traction for the second consecutive session on Friday, shrugging off some renewed US Dollar selling bias. Despite robust US economic data released overnight, the greenback remained on the defensive amid firming expectations that the Fed will hold interest rates steady through 2019.
The positive momentum also seemed unaffected by a weaker tone surrounding the US Treasury bond yields, rather took cues from improving risk sentiment – as depicted the prevalent positive mood around equity markets and which tends to undermine the Japanese Yen’s relative safe-haven demand.
Meanwhile, today’s strong follow-through up-move could further be attributed to some technical buying, especially after yesterday’s sustained move back above the very important 200-day SMA – around mid-111.00s. Hence, a follow-through up-move, back towards March swing highs near the 112.15 region, now looks a distinct possibility.
Later during the early North-American session, the US economic docket – highlighting the release of Prelim UoM Consumer Sentiment, will now be looked upon for some fresh impetus and short-term trading opportunities on the last trading day of the week.
Technical levels to watch
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