USD/JPY jumps to session tops, back above 109.00 handle
|- Optimistic trade-related comments from China helped ease the latest uncertainty.
- A turnaround in the global risk sentiment weighed on the JPY's safe-haven status.
The USD/JPY pair rallied around 50 pips in the last hour and refreshed session tops in the last hour, with bulls looking to extend the momentum further beyond the 109.00 handle.
The pair stalled its recent pullback from the 109.25-30 supply zone, levels just above the very important 200-day SMA, and managed to attract some dip-buying interest in reaction to positive trade-related comments from China, which weighed heavily on the Japanese Yen's perceived safe-haven status.
Fading safe-haven demand helped gain traction
China's Commerce Ministry was out with a statement in the last hour, saying that the US and China have agreed to cancel existing tariffs in different phases. The comments helped offset the overnight report, suggesting that phase one deal might be delayed until December and led to a turnaround in the global risk sentiment.
Fading safe-haven demand was further reinforced by a sudden pickup in the US Treasury bond yields, which extended some support to the US Dollar and remained supportive of the pair's solid intraday bounce. However, bulls are likely to wait for a sustained move beyond the recent swing high before positioning for any further appreciating move.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.