USD/JPY recovers early lost ground to weekly lows, back near mid-108.00s

The USD/JPY pair managed to recover the early lost ground to weekly lows and is currently placed at the top end of its daily trading range, around mid-108.00s.

Despite persistent worries over a further escalation in the US-China trade tensions, a slight improvement in the global risk sentiment dented the Japanese Yen's safe-haven status and helped the pair to rebound from an intraday low level of 108.17.

The risk-on mood led to a modest bounce in the US Treasury bond yields, which extended some support to the US Dollar and further collaborated to the pair's intraday bounce of around 30-pips, albeit the recovery lacked any strong bullish conviction. 

Increasing bets that the Fed will move to ease monetary policy in coming months held investors from placing any aggressive USD bullish bets and seemed to be the only factor that might continue to keep a lid on any meaningful recovery for the major.

Hence, it would be prudent to wait for a strong follow-through buying before confirming that the pair might have already formed a near-term bottom around the 108.00 handle and positioning for any further recovery towards reclaiming the 109.00 round figure mark.

Thursday's US economic docket features the release of initial weekly jobless claims along with import/export prices, both due at 12:30 GMT and might produce some short-term trading opportunities later during the early North-American session.

Technical levels to watch