USD/JPY steadily climbs to session tops, around 108.65 region
|- USD/JPY continues to show some resilience below mid-108.00s.
- Fading safe-haven demand undermined the JPY and lends support.
- UK election, trade uncertainty might keep a lid on any strong gains.
The USD/JPY pair managed to reverse the Asian session dip back closer to weekly lows, albeit lacked any strong follow-through and remained well within this week's broader trading range.
The pair continued showing some resilience at lower levels and once again managed to attract some dip-buying interest below 50-day SMA, or mid-108.00s, amid some signs of stability in the global financial markets.
Supported by improving risk sentiment
The Federal Reserve on Wednesday signalled that the policy stance will likely to remain accommodative and also indicated that rates would remain on hold, which provided a minor lift to the risk sentiment.
Slightly positive mood in the equity markets weighed on the Japanese yen's safe-haven status and helped the pair to bounce off lows, with a subdued US dollar demand doing little to influence the price action.
However, concerns about the outcome of the UK election along with the December 15 deadline for the new US tariffs kept investors cautious and kept a lid on any runaway rally for the major, at least for the time being.
Hence, it will be prudent to wait for strong follow-through buying, possibly beyond the very important 200-day SMA barrier near the 109.00 handle, before traders start positioning for any further appreciating move.
Technical levels to watch
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