- 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
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