- USD/JPY picked up to a one-week high.
- Rising equity market undermined the safe-haven JPY.
A softer tone surrounding the USD , falling US bond yields, stalemate in US stimulus talks could cap gains.
USD/JPY surged to one week highs 104.55-60 in early trade on Thursday without any obvious fundamental catalyst. Optimism of additional stimulus from the ECB and a vaccine rollout boosted equity markets undermining the safe-haven Japanese yen driving USD/JPY higher.
The USD traded in a narrow range amid doubts over whether Congress will agree to additional stimulus plus weaker US Treasury bond yields, kept the USD bulls on the defensive. That said the weaker USD didn’t prevent USD/JPY gaining traction up from sub-104.00 reached earlier this week.
Looking ahead inflation figures for November and Initial Weekly Jobless Claims will be in focus.