- USD/JPY continues scaling higher and jumps to over one-week tops on Friday.
- The risk-on mood weighed heavily on the safe-haven JPY and remained supportive.
- A strong follow-through pickup in the USD demand provided an additional boost.
The USD/JPY pair gained some strong follow-through traction through the mid-European session and surged through the 107.00 round-figure mark, hitting over one-week tops in the last hour.
The pair caught some aggressive bids on the last trading day of the week and was being supported by a combination of positive factors. The initial leg of a strong uptick was led by a turnaround in the global risk sentiment, which undermined the Japanese yen’s perceived safe-haven demand.
The positive momentum picked up some additional pace in the wake of some strong follow-through US dollar buying. Following a brief consolidation through the early part of Friday’s trading action, the greenback regained traction in the wake of a solid rebound in the US Treasury bond yields.
The upsurge took along some short-term trading stops near the 106.00-106.10 supply zone, which provided an additional boost and contributed to the ongoing momentum. With Friday’s strong gains, the pair has now recovered over 600 pips from multi-year lows set on the first day of this week.
Friday’s release of the Michigan Consumer Sentiment Index from the US is likely to be overshadowed by developments surrounding the coronavirus saga, which might continue to act as an exclusive driver of the broader market risk sentiment and determine the pair’s near-term trajectory.
Technical levels to watch
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