“¢ Investors looked past Wednesday’s upbeat release of the US ISM services PMI.
“¢ Reviving safe-haven demand underpins JPY and prompts some fresh selling.
“¢ The USD remains on the defensive amid weaker US bond yields/Fed rate cut buts.
The safe-haven Japanese Yen picked up the pace during the Asian session on Thursday and prompted some fresh selling around the USD/JPY pair, dragging it back closer to the 108.00 handle in the last hour.
The pair failed to capitalize on the overnight goodish rebound of around 70-pips from nearly five-month lows, further supported by upbeat US ISM non-manufacturing PMI print for the month of May, and met with some fresh supply amid reviving safe-haven demand.
The latest trade-related comments by the US President Donald Trump, saying that there was not enough progress made in a discussion between the US and Mexican officials weighed on investors sentiment and provided a minor boost to the Japanese Yen’s relative safe-haven status.
The pair erased the overnight recovery gains and failed to gain any respite from a softer tone surrounding the US Treasury bond yields, which kept exerting some downward pressure on the US Dollar amid firming expectations that the Fed will eventually cut interest rates in 2019.
In absence of any major market moving economic releases on Thursday, the broader market risk sentiment and the USD price dynamics might continue to act as key determinants of the pair’s momentum as the focus now shifts to Friday’s closely watched US monthly jobs report (NFP).
Technical levels to watch
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