USD/JPY witnessed good two-way price moves on Friday, though lacked any firm direction.
The set-up favours bullish traders and supports prospects for an extra appreciating move.
A sustained break below ascending trend-line support is required to negate the positive bias.
The USD/JPY pair lacked any firm directional bias on the last trading day of the week and seesawed between tepid gains/minor losses through the mid-European session.
The pair extended the previous day’s retracement slide from the 110.80 region, or the very best level since early April and witnessed some intraday selling on the last trading day of the week. A generally weaker tone round the equity markets provided a modest lift to the safe-haven Japanese yen and exerted some pressure on the main .
Bearish traders further took cues from a fresh leg down within the US Treasury bond yields. That said, the Fed’s sudden hawkish shift – signalling that it’d raise interest rates at a way faster pace than anticipated previously – acted as a tailwind for the US dollar. This, in turn, helped limit any meaningful pullback for the USD/JPY pair.