- The USD / JPY continued its upward progression during Tuesday’s mid-European session.
- Encouraging data on trials of coronavirus vaccines remained favorable on the upside.
- Falling US bond yields and the general weakness of the USD could limit any further gain.
The open tone surrounding the Japanese yen lifted the USD / JPY to new week highs around the region of 107.75. Bulls may now seek to extend momentum beyond the main 50 day SMA barrier.
The pair added to its positive movement overnight and gained traction for the second consecutive session on Tuesday. The increase was supported by declining demand for Japanese yen shelters amid signs of progress in the search for a COVID-19 vaccine.
US drug maker Moderna said on Monday that clinical results suggested that its vaccine had a high probability of protecting against the deadly coronavirus disease. This is due to recent optimism about the loosening of global lockdown restrictions and prompted investors to get rid of traditional safe haven currencies.
Despite Fed President Jerome Powell’s Optimistic Comments About the US Economy, The US Dollar Was Difficult To Attract Significant Buying Interest, But Has Falled More From Three Week Highs Set On Friday latest. This, coupled with a modest decline in US Treasury bond yields, could help further limit any significant positive development for the USD / JPY pair.
In the future, market participants are now looking forward to the release of data from the US housing market – Building permits and housing starts. This will be followed by Fed President Jerome Powell and the testimony by Congress of US Treasury Secretary Steven Mnuchin, which could generate significant business opportunities at the start of the North American session.