USD/JPY sits near daily tops, around mid-109.00s
| • Improving risk sentiment weighed on the JPY’s relative safe-haven status.
• Bullish traders seemed rather unaffected by a subdued USD price action.
• Thin liquidity conditions warrant some caution for intraday traders.
The USD/JPY pair built on its steady intraday up-move and has now moved to fresh session tops, just above mid-109.00s.
The pair stalled last week's sharp pullback from levels beyond mid-110.00s and regained some positive traction at the start of a new trading week, snapping three consecutive days of losing streak.
Improving global risk sentiment, as depicted by a positive sentiment around equity markets, weighed on the Japanese Yen's safe-haven status and turned out to be one of the key factors driving the pair higher.
The uptick seemed rather unaffected by a mildly softer tone surrounding the US Dollar, which remained on the defensive in wake of growing bets for a Fed rate cut amid the view that the economy is losing momentum.
Friday's weaker than expected US durable goods orders added to the data showing a sharp decelerating in the US manufacturing activity and fueled speculations that the Fed might consider cutting rates before the year-end.
Bullish traders also shrugged off uncertainty over a further escalation in trade tensions between the world's two largest economies, after the US President Donald Trump said that we are not ready to make a deal with China.
Meanwhile, liquidity conditions remained thin in the wake of holidays in the UK and the US, warranting some caution for intraday traders and before placing any aggressive short-term bets.
Technical levels to watch
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