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   “¢   The JPY’s relative safe-haven demand recedes on easing US-China trade tensions.
   “¢   A modest pickup in the USD demand remained supportive of a mildly positive tone.
   “¢   Softer US Treasury bond yields seemed to keep a lid on any meaningful up-move.

The USD/JPY pair held on to its mildly positive tone through the mid-European session on Wednesday, albeit seemed struggling to extend the momentum.  

After some good two-way price moves at the start of a new trading week, the pair managed to regain some traction and was supported by fading safe-haven demand amid easing US-China trade tensions.

Traders cheered a reprieve in the US-China trade tensions after the US Commerce Department temporarily allowed Chinese telecommunications giant Huawei to continue to purchase the US made goods until Aug. 19.

The optimism was evident from a goodish bounce in equity markets and undermined the Japanese Yen’s safe-haven status, which coupled with a modest pickup in the US Dollar demand remained supportive of the uptick.

The greenback got a minor lift after the Fed Chair Jerome Powell argued against cutting interest rates in the near term, albeit a subdued action around the US Treasury bond yields kept a lid on any runaway rally.

Hence, the focus will remain on Wednesday’s important release of the minutes from the latest FOMC monetary policy meeting, which might eventually help determine the pair’s next leg of a directional move.

In the meantime, today’s US economic docket  – featuring the release of existing home sales data, will be looked upon to grab some short-term trading opportunities later during the early North-American session.

Technical levels to watch