USD/JPY probes weekly high flashed on Wednesday after recently bouncing off 106.12.
Japan’s Chief Cabinet Secretary Yoshihide Suga is up for running as a national leader, suggesting a long future of the Abenomics.
BOJ’s Wakatabe also suggested further easing the previous day.
Risk catalysts remain mostly optimistic despite the Beijing-Washington tussle, American numbers will be the key following the latest gains of the USD.

USD/JPY takes the bids near 106.25 as markets in Tokyo open for Thursday’s trading. In doing so, the yen pair rises for the fourth day in a row while consolidating heavy losses marked on Friday. The major has recently been favored by the odds of continuous easy money policies for Japan as well as the US dollar gains. Even so, traders remain cautious ahead of today’s US ISM Services PMI and Friday’s US Nonfarm Payrolls (NFP), not to forget September 14 elections in Japan.

PM Abe will be remembered despite stepping down…

Although Japan’s Prime Minister (PM) Shinzo Abe cited health concerns to resign and trigger political uncertainty in the Asian major, most candidates who filed for the national leadership contest respect the Abenomics as the key driver of the economic growth. The latest one in the line is Japan’s Chief Cabinet Secretary Yoshihide Suga. Earlier, the ex-Liberal Democratic Party (LDP) heavyweights – Former Foreign Minister Kishida Fumio and Former LDP Secretary-General Ishiba Shigeru – have already declared their candidacy.

Not only the fiscal policies but the monetary policy framework is likely to remain easy as the world’s third-largest economy struggles amid the coronavirus (COVID-19) crisis. Although Japan reported the third-lowest daily tally in a month, as per Kyodo News, the economic impact of the pandemic is widespread. The same pushed BOJ Deputy Governor Masazumi Wakatabe to stay dovish the previous day.

Other than the easy money talks, sustained recovery in the US dollar and the run-up in the global equities are additional reasons for the bulls to remain happy. The US currently stretched its pullback from 28-month despite downbeat ADP Employment Change and Sino-American tension whereas the S&P 500 refreshed record high the previous day. Additionally, Nikkei 225 is also rising over 1.0% and S&P Futures seesaw around the record high near 3,580 flashed on Wednesday.

While risk catalysts are likely to remain on the driver’s seat, today’s US ISM Services PMI can entertain the momentum traders ahead of tomorrow’s job numbers.

Technical analysis

50-day EMA near 106.40 becomes an immediate upside barrier for the pair traders to watch ahead while the fresh selling isn’t expected until the quote stays beyond 106.09 level comprising 21-day EMA.

Additional important levels

Overview
Today last price	106.24
Today Daily Change	0.05
Today Daily Change %	0.05%
Today daily open	106.19

Trends
Daily SMA20	106.09
Daily SMA50	106.47
Daily SMA100	106.95
Daily SMA200	107.94

Levels
Previous Daily High	106.3
Previous Daily Low	105.85
Previous Weekly High	106.95
Previous Weekly Low	105.2
Previous Monthly High	107.05
Previous Monthly Low	105.1
Daily Fibonacci 38.2%	106.13
Daily Fibonacci 61.8%	106.02
Daily Pivot Point S1	105.93
Daily Pivot Point S2	105.67
Daily Pivot Point S3	105.48
Daily Pivot Point R1	106.37
Daily Pivot Point R2	106.56
Daily Pivot Point R3	106.82

USD/JPY prints four-day winning streak above 106.00 amid market optimism over Abenomics