- USD/JPY picked up on Thursday extending rebound from 105.00 mark.
- USD strengthened lifting the pair.
- The risk-off mood, sliding US bond yields cap gains.
The USD/JPY maintained mild early in the European session, albeit lacked follow-through and stayed comfortably within the trading range from the previous day.
The pair rebounded off 105.00 psychological, picking up momentum on Thursday, supported by a stronger US dollar.A pause in key vaccine study, plus rising covid cases boosted demand for the global reserve currency US Dollar..
A sell off in stock markets supported the Japanese yen’s safe-haven status preventing strong gains in USD/JPY . Weakness in US Treasury bond yields prevented meaningful upside for the USD. It could be sensible to wait for some further buying action before taking a long position.
USD/JPY has been selling off in a downward channel for over three days Suggesting more downside to come. A meaningful breakthrough the 105.00 could add weight to the bearish outlook with a fall towards September monthly swing lows, of 104.00..
Philly Fed Manufacturing Index and Initial Weekly Jobless Claims and Empire State Manufacturing Index will be in focus. The data could influence the USD price dynamics, and broader market risk sentiment, might produce some trading opportunities.