USD/JPY jumps back above 107.00 handle
• Bulls seemed to track a goodish pickup in the US bond yields/improving risk-appetite.
• Subdued USD demand fails to provide any additional bullish impetus.
The USD/JPY pair quickly reversed an early downtick and has now moved back above the 107.00 handle, recovery part of Friday's retracement slide from over 1-month highs.
Against the backdrop of disappointing headline NFP print, a steep sell-off in the US equity markets on Friday underpinned the Japanese Yen's safe-haven appeal and prompted some selling near mid-107.00s, over 1-month tops.
The selling pressure abated during the Asian session on Monday, with bulls now tracking a goodish pickup in the US Treasury bond yields. This coupled with a slight improvement in investors' risk appetite, as depicted by positive trading sentiment around equity markets, leading to fading safe-haven demand, remained supportive of the pair's modest uptick.
However, persistent US-China trade tension kept the US Dollar bulls on the back-foot and did little to provide any further bullish impetus, capping any additional gains at least for the time being.
With an empty US economic docket, broader market risk sentiment and the USD price dynamics would remain key determinants of the pair's momentum at the start of a new trading week.
Technical levels to watch
Immediate resistance is pegged near 107.35-40 area, above which the pair is likely to aim towards 107.75-80 supply zone en-route the 108.00 handle. On the flip side, 106.80-75 area now seems to protect the immediate downside, which if broken might prompt some additional weakness back towards 106.30 intermediate support ahead of the 106.00 handle.