USD/JPY steadily climbs back above 106.00 mark, fresh session tops
- A combination of factors assisted USD/JPY to reverse an early dip to over one-week lows.
- The calmer market mood dented the JPY’s safe-haven status and remained supportive.
- Bulls further took cues from a pickup in the US bond yields, which underpinned the USD.
The USD/JPY pair managed to rebound around 35-40 pips from over one-week lows and refreshed session tops, around the 106.15 region in the last hour.
The pair attracted some dip-buying near the 105.80-75 region and has now moved into the positive territory, recovering a part of the previous day's negative move. The uptick was supported by a combination of factors, including sustained US dollar buying and the calmer market mood.
The greenback remained well supported by the heavily offered tone surrounding the British pound amid growing fears of a no-deal Brexit. Adding to this, a modest pickup in the US Treasury bond yields further underpinned the greenback and further contributed to the USD/JPY pair's bounce.
Meanwhile, a modest recovery in the global risk sentiment dented the Japanese yen's perceived safe-haven status. This, in turn, provided an additional boost to the USD/JPY pair and remained supportive of the intraday positive move, though lacked any strong follow-through buying.
There isn't any major market-moving economic data due for release from the US on Wednesday. Hence, it will be interesting to see if the pair is able to capitalize on the positive move or runs out of the steam at higher levels.
Technical levels to watch