USD/JPY climbs to fresh YTD tops, bulls eyeing a move towards 111.00 handle

   •  The prevalent risk-on mood continues to dent JPY’s safe-haven status. 
   •  Softer Japanese PPI/renewed USD buying remained supportive of the move.
   •  The latest US consumer inflation figures now eyed for some fresh impetus.

The USD/JPY pair traded with a positive bias for the third consecutive session and touched 1-1/2 month high level of 110.77, or fresh YTD tops in the last hour.

The Japanese Yen continues to be weighed down by fading safe-haven demand amid the prevalent risk-on mood in broader markets, supported by rising hopes of a breakthrough in the US-China trade talks and the US President Donald Trump's overnight comments that he could let the March 1 tariff deadline to slide for a while. 

Investors' appetite for riskier assets got an additional boost on news that the US lawmakers have reached a tentative budget deal to avert another partial government shutdown, which coupled with softer Japanese Producer Price Index (PPI) further dented the already weaker sentiment surrounding the domestic currency.

Meanwhile, the US Dollar stalled its overnight corrective slide and regained some positive traction during the early European trading session, which provided an additional boost to the major and was sen as one of the key factors behind the pair's latest leg of an uptick to the highest level since late November.

Further gains, however, remained limited as market participants now look forward to the release of the latest US consumer inflation figures for some fresh impetus. Even the slightest of disappointment would be enough to prompt some fresh USD long-unwinding trade and exert some downward pressure on the major.

Technical levels to watch