USD/JPY jumps to fresh session tops, closer to mid-107.00s

• USD/JPY once again showed some resilience near monthly lows, below 107.00 mark.
• A goodish pickup in the USD demand seemed to be the only factor lending some support.
• The prevailing cautious mood might underpin the JPY’s safe-haven demand and cap gains.

The USD/JPY pair has managed to rebound around 50 pips from session lows and jumped to fresh session tops, around the 107.35 region in the last hour.

The pair – for the second straight session on Wednesday – showed some resilience below the 107.00 round-figure mark and attracted some dip-buying near monthly lows set on April 1st.

Persistent worries over the economic fallout from the coronavirus pandemic assisted the US dollar to regain its status as the global reserve currency, which eventually extended some support.

The positive factor, to a larger extent, was negated by some renewed weakness in the global equity markets, which underpinned the Japanese yen’s safe-haven status and might cap further gains.

The latest optimism over a steady trend down in the new coronavirus cases and deaths across the world turned out to be short-lived, dampening investors’ appetite for riskier assets.

Moving ahead, market participants now look forward to the US macro data to assess the economic damage caused by the COVID-19-induced lockdowns and grab some trading opportunities.

Wednesday’s US economic docket highlights the release of monthly retail sales data and industrial producing figures, which might play a key role in influencing the USD price dynamics.

Technical levels to watch