- USD / JPY gains strong positive traction for the third day in a row on Thursday.
- COVID-19 vaccine optimism weighs on the safe-haven JPY and supports the pair’s upward move.
- The bulls seem unaffected by a dovish USD demand amid stalled US stimulus talks.
The pair USD/JPY is spreading your intraday earnings and has soared to highs of more than a week, around the 104.55-60 region, during the first half of the European session on Thursday.
The pair has built on this week’s bounce, from levels below 104.00, and has continued to climb higher for the third day in a row Thursday. The momentum has helped the USD / JPY pair to post gains for the fourth day of the previous five and does not appear to be affected by a moderate action in the price of the US dollar.
Despite the lack of consensus on additional fiscal measures in the United States, global risk sentiment remains supported by the optimism about the launch of the vaccine for COVID-19. This, in turn, has weighed on demand for the safe-haven Japanese yen and pushed the USD / JPY higher.
On the other hand, the dollar has appeared from a firm directional bias and has remained trapped within a range. amid doubts about whether Republicans and Democrats can agree to the proposed aid package. US lawmakers approved an interim government funding bill on Wednesday, which will delay the government shutdown until December 18.
Aside from this, a weaker tone around US Treasury yields has done further to keep USD bulls on the defensive. That said, the chances of some intraday stop orders being triggered above the 200 hourly SMA appear to support the strong upward movement of the USD / JPY pair.
Market participants are now looking forward to the US economic calendar, which highlights the latest releases of consumer inflation figures and initial weekly jobless claims. The data, along with the news about the stimulus in the US, will influence the USD and could generate some short-term trading opportunities around the USD / JPY.
USD / JPY technical levels
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