- The USD remains on the defensive amid a fresh leg of a downfall in the US bond yields.
- Reviving safe-haven demand underpinned the JPY and added to the intraday selling bias.
The USD/JPY pair added to its intraday losses and dropped to fresh session lows, below mid-107.00s during the early North-American session.
The pair failed to capitalize on the previous session’s goodish up-move to weekly tops – supported by encouraging trade-related developments – and witnessed a modest pullback on Thursday amid some renewed US Dollar selling bias. Bearish traders further took cues from a fresh leg of a downfall in the US Treasury bond yields and seemed rather unaffected by Thursday’s release of mostly in line US Q2 GDP growth figures.
Slight risk-off exerts some pressure
Meanwhile, the latest leg of a sudden slide over the past hour or so could further be attributed to a slight deterioration in the risk sentiment, which tends to underpin demand for traditional safe-haven currencies, including the Japanese Yen. The House Intel Committee released the full complaint letter from the so-called ‘Whistleblower’ regarding Trump’s concerning conversations with Ukraine and weighed on investors’ sentiment.
The downtick, however, seemed limited, at least for the time being, and thus, warrant caution before traders again start repositioning for any near-term depreciating move. Moving ahead, a scheduled speech by the Fed Governor Richard Clarida might influence the USD price dynamics and produce some short-term trading opportunities later during the US session and ahead of Friday’s release of Tokyo Consumer Price Index (CPI) from Japan.
Technical levels to watch
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