USD/JPY consolidating early strong gains, oscillating in a range above 110.00 mark
|Following a weekly bullish gap, the USD/JPY pair seems to have entered a bullish consolidation phase within 30-pips narrow trading band above the key 110.00 psychological mark.
Currently trading around 110.20 level, a fresh wave of global risk-on trade, following the outcome of the first round of the French Presidential election, weighed heavily on the Japanese Yen's safe-haven appeal.
Moreover, French relief rally, coupled with renewed optimism over the US President Donald Trump's "massive tax cut" plans also lifted the US treasury bond yields sharply higher further supported the pair's strong up-surge to nearly two-week tops.
Meanwhile, a sharp surge in the shared currency pressured the key US Dollar Index and collaborated towards capping further up-move, with the pair now retreating around 40-50 pips from session tops.
• JPY may no longer be the top performer against the dollar - Nomura
Next in focus would be speech by Minneapolis Fed President Neel Kashkari, due later during the NY session, with broader market risk-sentiment continue acting as a key driver for the pair's movement on Monday.
Technical levels to watch
A follow through retracement below session low support near 109.85 level is likely to accelerate the slide towards 109.40-35 horizontal support before the pair eventually drops back below the 109.00 handle to retest the very important 200-day SMA support.
On the upside, sustained momentum above 110.50-60 area (session tops) could get extended towards 110.75 horizontal level ahead of 111.00 round figure mark and the next hurdle near 111.15 region.
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