- US-China trade optimism continued weighing on the JPY’s safe-haven status.
- A modest pickup in the USD demand remained supportive of the positive move.
- Investors now look forward to the US macro data for some meaningful impetus.
The USD/JPY pair gained some follow-through traction on Wednesday and is currently placed near the 109.20 region, or two-week tops set in the previous session.
The incoming positive trade-related headlines remained supportive of the prevalent risk-on mood and continued denting demand for traditional safe-haven assets, including the Japanese yen.
Risk-on mood supportive ahead of US macro data
The US President Donald Trump’s overnight comments, saying that we are in the final throes of a very important deal with China, added to the recent encouraging signs on US-China trade talks.
This coupled with a modest pickup in the US dollar demand, despite a subdued action surrounding the US Treasury bond yields, provided an additional boost to the pair’s ongoing positive momentum.
Meanwhile, the pair now seems to have found acceptance above the very important 200-day SMA and thus, seems poised to build on its recent strength ahead of Wednesday’s important US macro data.
The US economic docket highlights the release of Durable Goods Orders and the second estimate of Q3 GDP growth figures. This coupled with some second-tier releases might influence the USD price dynamics and produce some short-term trading opportunities later during the early North-American session.
Technical levels to watch
Share
