- The USD / JPY continued to gain ground for the third consecutive session on Monday.
- A strong recovery in global risk sentiment weighed on the safe haven status of the JPY.
- A good recovery in US bond yields supported the USD and remained favorable.
USD / JPY added to its intraday gains and broke above 109.00, hitting week highs in the past hour.
The pair built on last week’s recovery movement from levels below 107.00 and continued to gain positive traction for the third consecutive session on Monday amid strong recovery in global risk sentiment.
A drop in the number of deaths from COVID-19 breathed a sigh of relief for traders and the same was evident from the sharp rise in US equity futures, which undermined the demand for safe haven from the Japanese yen.
The JPY was further weighed down by the TBS News report that the Japanese government is considering six months for a declaration of emergency to curb the coronavirus epidemic in Tokyo.
At the same time, the risk climate was further reinforced by a satisfactory rise in yields on US Treasury bonds, which prolonged support for the US dollar and contributed to the positive development of the pair.
This, coupled with technical purchases above the very large 200-day SMA, which resulted in short-term trading stops near the 109.00 mark, further accelerated intraday dynamics.
Currently placed near the tops of the sessions, around the 109,35-40 region, some follow-up purchases should pave the way for additional gains, possibly towards the recovery of the psychological mark of 110.00.