USD/JPY rallies beyond mid-108.00s on Trump's positive comments
- Trump said he will have an extended meeting with the Chinese President next week.
- This comes on the back of Draghi's dovish comments and triggers risk-on trade.
- Fading safe-haven demand weighs heavily on the JPY and remained supportive.
The USD/JPY pair quickly reversed an early North-American session dip to over one-week lows and rallied over 60-pips to refresh daily tops in the last hour.
The latest leg of a sudden pickup followed the US President Donald Trump's optimistic trade-related comments, saying that he will be having an extended meeting with his Chinese counterpart Xi next week on the sidelines of the G-20 meeting in Japan.
This comes on the back of dovish remarks by the ECB President Mario Draghi earlier this Tuesday and boosted investors' appetite for riskier assets, which was evident from a strong rally across equity markets and weighed heavily on the Japanese Yen's safe-haven status.
Bullish traders further took cues from a goodish intraday recovery in the US Treasury bond yields, which extended some support to the US Dollar and remained supportive of the pair's solid rebound from the vicinity of the 108.00 round figure mark.
It, however, remains to be seen if the pair is able to capitalize on the positive momentum or runs out of the steam at higher levels as traders start repositioning for the next big event risk - the latest FOMC monetary policy update, scheduled to be announced on Wednesday.
Technical levels to watch
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