USD/JPY: Bulls retrace steepest rise in 11 weeks above 108.50

USD/JPY eases from 23-day high to 108.65 during the pre-Tokyo Asian session on Wednesday. Having earlier cheered the broad risk-on sentiment, the pair bulls seem to catch a breather amid mixed macros and a lack of major data.

Virus headlines, light calendar question the previous risk-on sentiment….

Fears of the second wave of the coronavirus (COVID-19) in the US, as cited by the NBC, seem to have recently weighed on the market’s previous optimism.

Also challenging the earlier upbeat mood could be the fears emanating from the US civil unrest that seems to have ignored President Donald Trump’s warning.

As a result, the S&P 500 Futures part ways from the previous day’s upbeat performance by Wall Street while declining 0.10% to 3,075 by the press time.

Global markets cheered the hopes of economic restart in the US while also praising the hopes of further stimulus from the ECB. Additionally, the fresh tussle between South Korea and Japan, coupled with worrisome comments from Moody's on Japan, weighs on the Japanese yen on Tuesday.

Moving on, a light calendar in Japan will push the pair traders towards looking for updates from the US, also concerning the pandemic, for fresh impetus.

Technical analysis

Unless slipping back below 108.10, comprising multiple highs marked since April 16, bulls may keep aiming April top near 109.40.