The USD/JPY pair edged higher through the early European session and was last seen trading near the top end of its daily range, around the 103.65-70 region. Following the previous day's consolidative price move near two-week lows, the pair regained traction on the last trading day of the week and was supported by a modest pickup in the US dollar demand. That said, a combination of factors might hold bulls from placing aggressive bets and cap gains for the USD/JPY pair.

A sharp pullback in the equity markets could lend some support to the Japanese yen's relative safe-haven status. Given that a lot of positive news was already priced in the markets, investors opted to take some profits off the table amid renewed concerns about the economic fallout from the ever-increasing COVID-19 cases.