USD/JPY climbs to fresh daily highs above 108
|- Wall Street's main indexes stretch higher following the upbeat start.
- The Greenback preserves its strength in the American session.
- Risk-on mood weighs on traditional safe-haven assets on Monday.
After spending the majority of the day fluctuating in a relatively narrow band below the 108 handle, the USD/JPY turned north in the last hour and advanced to a fresh daily high of 108.15. As of writing, the pair was up 0.2% on the day at 108.12.
The positive risk sentiment as reflected by the upbeat performance of major equity indexes in the United States seems to be weighing on traditional safe-haven assets such as the JPY, gold, and the CHF on Monday. At the moment, the S&P 500 and the Nasdaq Composite indexes are adding 0.6% and 0.75% respectively.
Although there were no major developments that could have impacted the risk perception, the optimism about the possibility of the United States and China coming to terms on trade before escalating the conflict any further seems to be helping the sentiment improve.
USD continues to outperform its major rivals
Additionally, the US Dollar Index, which gauges the USD's value against a basket of six major currencies, continued to push higher after closing the previous week above the critical 99 handle and reached its best level in more than two years at 99.46 to provide an additional boost to the pair.
In the early trading hours of the Asian session on Tuesday, the labour market and quarterly manufacturing outlook data from Japan will be watched closely by the market participants. Investors are also likely to keep a close eye on the performance of major equity indexes.
Technical levels to watch for
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