USD/JPY eases from multi-month tops, holds above mid-109.00s
|- USD/JPY gains some positive traction amid the prevalent risk-on mood.
- A strong pickup in the US bond yields remained supportive of the uptick.
- Traders now eye the US ISM manufacturing PMI for a fresh impetus.
The USD/JPY pair failed to capitalize on its early positive move to six-month tops, albeit has still managed to hold with modest daily gains above mid-109.00s.
The pair managed to regain some positive traction on the first day of a new trading week and finally broke out of its two-day-old consolidative price action amid the prevalent risk-on mood, which tends to undermine the Japanese yen's perceived safe-haven status.
Upbeat Chinese economic data, showing an unexpected jump in the manufacturing sector activity in November, boosted the global risk sentiment. The same was evident from a positive mood around equity markets and reinforced by some strong follow-through pickup in the US Treasury bond yields.
The positive momentum lifted the pair to an intraday high level of 109.73, the highest since May 30, though a subdued US dollar price action did little to provide any additional boost, rather kept a lid on any runaway rally for the major, at least for the time being.
This coupled with persistent uncertainty concerns over a further deterioration in the US-China relations, especially after the US President Donald Trump signed a law backing Hong Kong, might further hold investors from placing any aggressive bullish bets.
Moving ahead, market participants now look forward to Monday's US economic docket, which highlights the release of ISM Manufacturing PMI and might produce some short-term trading opportunities later during the early North-American session.
Technical levels to watch
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