- Trump advocated for a stronger dollar and gave the USD / JPY a good rally.
- The lower market mood benefited the JPY refuge and capped the upside.
The USD / JPY the pair has jumped to new session highs around the 107.10 region in the past hour, although no solid follow-up purchases have been made.
The pair caught a new offer and broke out of its consolidated range 106.85-75 amid a sudden recovery in the American dollar asks in response to comments from US President Donald Trump. After consolidating into a range throughout the mid-European session, the greenback sparked some buying interest after Trump advocated a stronger dollar.
Trump said having a strong dollar was a “big thing” and added that it would help the economy during the recovery from the coronavirus crisis. It comes after the Fed President Jerome Powell rejected the idea of negative rates on Wednesday, which boosted the ball and helped the USD / JPY pair gain ground.
However, a weaker tone around the stock markets continued to support the safe haven status of the Japanese yen and put a brake on any runaway recovery from the main. The sense of global risk has been heightened by fears over the second wave of coronavirus infections and weakening hopes for a rapid economic recovery.
The 200-hour SMA intraday rebound stalled nearly 100 SMA hours, making it prudent to wait for a sustained force beyond the mentioned barrier before positioning for any significant positive movement. Market participants are now eagerly awaiting the publication of the initial weekly jobless claims in the United States for certain significant trading opportunities.