The USD/JPY pair maintained its offered tone through the first half of the trading action on Thursday and was last seen hovering near daily lows, just above mid-106.00s.
The pair struggled to capitalize on its recent recovery move from five-month lows, instead faced rejection near the 107.00 mark and for now, seems to have snapped four consecutive days of the winning streak. The downtick was sponsored by a combination of factors – sustained US dollar selling bias, a fresh leg down in the US Treasury bond yields, and a modest pullback in the US equity futures.
The USD remained depressed in the wake of the political deadlock over additional stimulus measures to support the economic recovery from the coronavirus pandemic. Bearish traders further took cues from a fresh leg down in the US Treasury bond yields and the prevalent cautious mood, which underpinned the safe-haven Japanese yen and contributed to the USD/JPY pair's modest pullback on Thursday