USD/JPY eases from tops, still well bid above 111.00 handle

   •  Resurgent USD demand/US bond yields helped regain positive traction.
   •  A sudden fall in European equities kept a lid on any further up-move.

The USD/JPY pair built on its intraday positive momentum and climbed to fresh session tops in the last hour, albeit quickly retreated around 15-20 pips thereafter.

For the second consecutive session, the pair managed to attract some fresh buying interest near the 110.90-85 region and this time was supported by resurgent US Dollar demand, with bulls further taking cues from a goodish pickup in the US Treasury bond yields. 

Further gains, however, remained capped amid a sudden fall across European equity markets, which provided a minor boost to the Japanese Yen's safe-haven status. This coupled with growing concerns over the recent developments in the emerging markets and the US-China trade spat might further collaborate towards keeping a lid on any further strong up-move, at least for the time being. 

Traders now look forward to the US economic docket, highlighting the release of ISM manufacturing PMI for some fresh impetus. However, this week's key focus would remain on the closely watched US non-farm payrolls data, due for release on Friday. 

Technical outlook

Valeria Bednarik, FXStreet's own American Chief Analyst writes: “The 111.50 region is quite a strong static resistance area, and for the current bullish movement to continue, the pair would need to accelerate through it. Below 111.20, on the other hand, the upward potential will likely fade but a steeper decline is not yet at sight.”