“¢ Improving risk sentiment dents the JPY’s relative safe-haven status.
“¢ The USD remains supported by a solid rebound in the US bond yields.
“¢ Focus now shifts to the prelim US GDP growth figures, due later today.
The USD/JPY pair climbed to one-week tops in the last hour, with bulls now eyeing a move towards reclaiming the key 110.00 psychological mark.
The pair continued gaining positive traction for the second consecutive session on Thursday and built on the overnight goodish bounce from the 109.00 neighbourhood, or two-week lows.
A slight improvement in the global risk sentiment was seen denting the Japanese Yen’s relative safe-haven status and turned out to be one of the key factors fueling the ongoing recovery momentum.
Bullish traders further took cues from a solid rebound in the US Treasury bond yields, albeit a sideways consolidative US Dollar price action failed to provide any additional boost to the major.
Hence, it would be prudent to wait for a strong follow-through buying before confirming that the pair might have actually bottomed out in the near-term and positioning for any further up-move.
Thursday US economic docket – highlighting the release of prelim (second estimate) US Q1 GDP growth figures, will now be looked upon for fresh impetus later during the early North-American session.
Technical levels to watch
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