The USD/JPY pair traded with a mild positive bias heading into the European session and was last seen hovering near-daily tops, just above mid-109.00s. The pair edged higher on the last trading day of the week and was supported by a combination of factors, stalling this week's retracement slide from levels just above mid-110.00s. The worsening COVID-19 situation in Japan undermined the Japanese yen and assisted the USD/JPY pair to gain some positive traction.
In the latest developments, Japan reported more than 9,000 daily cases yesterday. Adding to this, the government reportedly mulls a state of emergency for Osaka prefecture and extends in Tokyo to 31 August. This, along with a modest pickup in the US dollar demand, provided an additional boost to the USD/JPY pair.