USD/JPY climbs to session tops, bulls eyeing a move beyond 107.00 mark
- USD/JPY gains some positive traction on Thursday amid a modest pickup in the USD demand.
- The risk-off mood might benefit the safe-haven JPY and cap any further gains for the major.
- Investors eye the ECB policy decision and the US macro data for some meaningful impetus.
The USD/JPY pair refreshed daily tops during the early European session, with bulls now looking to build on the momentum beyond the 107.00 mark.
Following a brief consolidation through the early part of the trading action on Thursday, the pair caught some bids and moved away from weekly lows set in the previous session. The uptick was exclusively sponsored by a goodish pickup in the US dollar demand, though the risk-off mood might cap any further gains.
The ever-increasing number of coronavirus cases overshadowed the recent optimism over a potential vaccine for the highly contagious disease. This comes amid concerns about worsening US-China relations, which took its toll on the global risk sentiment. This, in turn, might benefit the safe-haven Japanese yen and cap the upside for the USD/JPY pair.
Thursday's key focus will be on the latest monetary policy update by the European Central Bank. This coupled with US macro data might infuse some volatility and produce some meaningful trading opportunities. The US economic docket highlights the release of monthly Retail Sales, Philly Fed Manufacturing Index and Initial weekly jobless claims.
Technical levels to watch