USD/JPY remains depressed, down little around 109.30 region
- USD/JPY fails to capitalize on the overnight attempted recovery.
- The downside remains cushioned amid a modest USD uptick.
- Investors now look forward to the US data for a fresh impetus.
The greenback remained on the defensive against its Japanese counterpart and failed to assist the USD/JPY pair to capitalize on the previous session's late rebound from weekly lows.
The recent optimism over phase one US-China trade deal pushed the US equity indices to new intraday highs on Thursday. The risk-on mood undermined the Japanese yen's perceived safe-haven status and helped the pair to recover around 15-20 pips from lows during the US trading session.
The uptick lacked any strong follow-through amid some political uncertainty stemming out of the US President Donald Trump’s impeachment by the House of Representatives. Meanwhile, the downside remained cushioned amid a mildly positive tone surrounding the US dollar.
As investors looked past Thursday softer second-tier US economic data, a modest uptick in the US Treasury bond yields extended some support to the greenback. Bulls, however, seemed unimpressed, rather preferred to stay on the sidelines on the back of the prevalent cautious mood.
Hence, it will be prudent to wait for some strong follow-through buying before traders again start positioning for any further near-term appreciating move. Market participants now look forward to Friday's US economic releases in order to grab some short-term trading opportunities.
The US economic docket highlights the release of Final GDP figures for the third quarter of 2019. This will be followed by personal income/spending data and Core PCE price index, which might influence the USD price dynamics and provide a fresh impetus to the major.
Technical levels to watch