USD/JPY sits near 6-week tops, weaker risk sentiment capping gains
- The pair built on it recent recovery amid tempered Fed rate cut bets.
- Reviving safe-haven demand underpins JPY and capped further gains.
- Investors now look forward to Fedspeaks for some short-term impetus.
The USD/JPY pair climbed to near six-week tops during the Asian session on Tuesday, albeit lacked any strong follow-through and retreated few pips thereafter.
The pair gained some positive traction for the third consecutive session on Tuesday and built on its recent recovery move from multi-month lows, and the overnight bullish breakthrough the 108.60-70 region.
The US Dollar traded near a three-week high amid reduced bets on aggressive Fed rate cuts and was seen as one of the key factors fueling the ongoing positive momentum back closer to the 109.00 round figure mark.
However, deteriorating global risk sentiment, as depicted by a weaker tone around equity markets underpinned the Japanese Yen's safe-haven demand and kept a lid on any strong follow-through, ahead of 50-day SMA.
Investors also seemed reluctant to place any aggressive bets ahead of the Fed Chair Jerome Powell's public appearance on Tuesday and a two-day Congressional testimony on Wednesday and Thursday.
Apart from this, scheduled speeches by St. Louis Fed President James Bullard and the Fed Governor Randal Quarles might produce some meaningful trading opportunities later during the early North-American session.
Technical levels to watch