USD/JPY pares intraday losses, holds above 104.00 mark
|- USD/JPY remained depressed through the first half of the trading action on Friday.
- A softer tone surrounding the USD, sliding US bond yields exerted some pressure.
- COVID-19 vaccine optimism undermined the safe-haven JPY and helped limit losses.
The USD/JPY pair remained depressed through the early European session, albeit has managed to rebound around 25 pips from multi-day lows. The pair was last seen trading around the 104.15 region, down around 0.10% for the day.
The pair prolonged this week's retracement slide from the 104.75 region and witnessed some follow-through selling for the second consecutive session on Friday. The downfall was exclusively sponsored by a softer tone surrounding the US dollar, which was being weighed down by hopes for more stimulus from the incoming Biden administration.
Bearish traders further took cues from a fresh leg down in the US Treasury bond yields, albeit the prevalent upbeat market mood undermined the safe-haven Japanese yen and helped limit the downside. The global risk sentiment remained well supported by optimism over the development of a potential vaccine for the highly contagious coronavirus disease.
The USD/JPY pair managed to find some support near the 103.90 region, though the attempted recovery move runs the risk of fizzling out rather quickly. This makes it prudent to wait for some strong follow-through buying before positioning for any further appreciating move amid absent relevant market-moving economic releases from the US.
Technical levels to watch
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