07.01 - USD/JPY regained positive traction
- by George Solotarov
The USD/JPY pair edged higher through the Asian session and was last seen hovering near the top end of its daily trading range, around the 103.25-30 region. Following the previous day's pullback of around 40 pips from near one-week tops, the pair regained positive traction for the second consecutive session on Thursday. The uptick was sponsored by the prevalent risk-on environment, which tends to undermine demand for the safe-haven Japanese yen.
The global risk sentiment remained well supported by hopes for a strong economic recovery in 2021. Adding to this, a Democratic victory in the crucial US Senate runoff elections in the state of Georgia raised prospects for a more expansive fiscal policy and further boosted investors' confidence.