USD/JPY stages a modest rebound from five-month lows set on Wednesday. Receding safe-haven demand weighed on the JPY and remained supportive. The ongoing slump in the US bond yields seemed to cap any further gains. The USD/JPY pair held on to its modest recovery gains and is currently placed near the top end of its daily trading range, around the 107.50-60 region, albeit lacked any strong follow-through. The pair showed some resilience below the 107.00 level for the second straight session on Tuesday and quickly reversed an early dip to fresh five-month lows. The uptick was being supported by a positive mood around equity markets, which undermined the Japanese yen’s safe-haven demand. Record-low bond yields capping gains This coupled with a goodish US dollar rebound from near two-month lows provided an additional boost and remained supportive. However, the ongoing relentless fall in the US Treasury bond yields to historic lows held investors from placing aggressive bullish bets and kept a lid on any strong gains. In fact, the yield on the benchmark US 10-year government bond dropped below the 1% handle in the wake of the Fed’s surprise 50bps rate cut on Tuesday. The Fed delivered an emergency rate cut to cushion the potential impact from the spread of coronavirus on the economy. It will now be interesting to see if the pair is able to capitalize on the recovery or meets with some fresh supply at higher levels – reaffirming the near-term bearish bias – as market participants now look forward to important US macro releases for a fresh impetus. Wednesday’s US economic docket highlights the release of the ADP report on private-sector employment, which will be followed by the ISM Non-Manufacturing PMI. This might eventually influence the USD price dynamics and produce some meaningful trading opportunities. Technical levels to watch FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next BOJ’s Kuroda: Will carefully watch economy, market developments and take appropriate action FX Street 3 years USD/JPY stages a modest rebound from five-month lows set on Wednesday. Receding safe-haven demand weighed on the JPY and remained supportive. The ongoing slump in the US bond yields seemed to cap any further gains. The USD/JPY pair held on to its modest recovery gains and is currently placed near the top end of its daily trading range, around the 107.50-60 region, albeit lacked any strong follow-through. The pair showed some resilience below the 107.00 level for the second straight session on Tuesday and quickly reversed an early dip to fresh five-month lows. The uptick was being supported by a… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.