The USD/JPY pair rebounded from the weekly low and reached a fresh daily peak around 134.30 during the early North American session. The pair received support from the release of the US PMI prints, which showed business activity in the US private sector expanded at a strengthening pace in April, leading to expectations that the Federal Reserve will continue raising interest rates. This led to a goodish intraday recovery in US Treasury bond yields and benefitted the US Dollar. However, the Japanese Yen might continue to draw support from expectations that the Bank of Japan could begin to phase out its massive stimulus program later this year, which might limit the upside for the USD/JPY pair. Traders should wait for strong follow-through buying before positioning for the resumption of the recent move-up from the mid-130.00s or the monthly low. Nevertheless, the USD/JPY pair is on track to end in the green for the second straight week.
