The Dollar/Yen strengthened on Friday as demand for riskier assets returned with the rally in U.S. Treasuries running out of steam and global stock markets improving.
Despite the slight recovery in the Forex pair, the Japanese Yen was still poised to finish higher for the week, having posted its biggest daily rise since November the previous session.
On Friday, the USD/JPY settled at 110.103, up 0.341 or +0.31%.
The USD/JPY has been under pressure since posting a technical reversal top on July 1 after touching its highest level since March of 2020. Traders picked up where they left off the previous week, hitting the Dollar/Yen hard as investors unwound bets on risky currencies and as concerns over the spread of COVID variants increased the demand for safe havens.
The greenback was weaker against the Japanese Yen and other currencies which are generally low-interest rate, stable markets that traders short, using the proceeds to buy…