Search ForexCrunch
  • The ongoing US political drama exerted some pressure earlier on Friday.
  • US-China trade optimism remained supportive and helped limit the slide.
  • Investors now look forward to a slew of US macro data for a fresh impetus.

The USD/JPY pair reversed an early dip and is currently placed near the top end of its daily trading range, back closer to weekly tops set in the previous session.
The pair continued with its struggle to sustain/build on the momentum further beyond 100-day SMA barrier and ticked lower during the Asian session on Friday, albeit a combination of supporting factors attracted some dip-buying interest and helped limit any meaningful downfall.

Improving risk sentiment extended some support

With investors looking past the ongoing political drama, a turnaround in the global risk sentiment – as depicted by a recovery in equity markets and reinforced by a pickup in the US Treasury bond yields – weighed on the Japanese Yen’s safe-haven status and extended some support to the major.
In the latest US political development, the House Intelligence Committee on Thursday released the full complaint letter from the ‘whistleblower’ regarding the US President Donald Trump’s concerning conversations with Ukraine and led to the overnight decline in the US equity markets.
Adding to this, a follow-through US Dollar buying interest, lifting it to two-week tops, further collaborated to the pair’s modest intraday uptick of around 15 pips, through bulls remained cautious amid the recent reports related to an impeachment inquiry against Trump.
Hence, it will be prudent to wait for a sustained move beyond the 108.00 handle before traders start positioning for any further near-term appreciating move. Moving ahead, Friday’s US economic docket – highlighting the release of durable goods orders data and Core PCE price index – will now be looked upon for a fresh impetus later during the early North-American session.

Technical levels to watch