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  • USD/JPY holds onto recovery gains from 108.60.
  • The latest coronavirus updates from the US, comments from the Fed’s Kaplan weigh on the market’s risks.
  • Optimism surrounding the US Presidential election, expectations of further stimulus offered risk-on the previous day.
  • Comments from BOJ’s Kuroda in immediate focus ahead of US economics, virus updates remain as the key.

While extending its recovery moves from the recent low of 108.60, USD/JPY rises to 108.90 ahead of the Tokyo open on Thursday. The yen pair earlier cheered the market’s risk-on sentiment amid expectations of further stimulus and an easy run for the favorite candidate for the US President’s post.

Not only the Reuters’ poll suggesting the BOJ’s another easing but comments from the US and Japanese policymakers also signaled that more stimulus to counter the coronavirus (COVID-19) is on their way.

On the other hand, Bernie Sanders stepped back from the US Presidential Candidate’s race, giving an edge to the market favorite Joe Biden and helping to brighten the trading sentiment.

Elsewhere, the coronavirus updates have been murky off-late with the US data pushing it near to the global leader Italy, as far as the death toll is concerned, while Reuters also citing chances of data being higher than what’s already reported.

It should also be noted that the Dallas Federal Reserve Bank President Robert Kaplan recently said that the US economy will recover in the second half of 2020 after shrinking 25-35% during the second quarter (Q2).

Furthermore, US President Donald Trump reiterated its calls to reopen the economy in phases, putting his hotels first, while also thanking the Indian PM Narendra Modi for availing the help to combat the pandemic.

Amid all these, the US stock futures open in negative, despite the upbeat performance of Wall Street and the US 10-year Treasury yields, by the press time.

Moving on, the Bank of Japan (BOJ) Governor Haruhiko Kuroda Due to deliver brief remarks at a BOJ branch manager’s meeting at 00:30 GMT and will be observed for any calls of further easing. Following that, the market may await the US Jobless Claims data amid recently jumping figures whereas Producers Price Index (PPI) and Michigan Consumer Sentiment could add a burden on the traders.

Technical analysis

Sustained trading beyond the key SMAs keeps bulls hopeful to challenge the March month high surrounding 111.75. However, 109.40 and 110.00 can act as intermediate halts.