• USD/JPY picked up on Wednesday amid weak demand for the safe-haven JPY.
  • Weak demand for USD capped further gains.
  • Looking ahead, US macro data, FOMC minutes are in focus.

USD/JPY edged higher early in the European session, trading at 104.50, up 0.11% at the time of writing.

The move higher on Wednesday was supported by a broad upbeat market mood as global risk sentiment was underpinned by vaccine optimism..

Furthermore, a smooth start to the Presidential transition process and reports that the former Fed Chair Janet Yellen could become the next US Treasury Secretary boosted investor’s confidence. Weakening demand for the US dollar capped gains for the USD/JPY pair.

Attention will now move to a slew  of top-tier US data Wednesday’s US economic calendar includes the releases of the second estimate GDP report, Durable Goods Orders, Initial Weekly Jobless Claims and final Michigan Consumer Sentiment Index for November.

Later the  FOMC meeting minutes will be poured over for the clues over the possibility of further policy easing by the Fed in December.