USD/JPY clings to daily gains near mid-109.00s but lacks follow-through

   •  A goodish pickup in the US bond yields offset weaker USD and remains supportive.
   •  Reviving safe-haven demand, amid negative equities now seemed to cap gains.

The USD/JPY pair maintained its strong bid tone through the early NA session and is currently placed around mid-109.00s, just a few pips away from daily tops touched earlier.

Despite the ongoing US Dollar profit-taking slide, the pair caught some fresh bids at the start of a new trading week, with bulls now seemed to track a goodish pickup in the US Treasury bond yields

Even the prevalent mixed sentiment around equity markets, which tends to underpin the Japanese Yen's safe-haven demand, did little to prompt any fresh selling, albeit now seems to contribute towards capping any further gains. 

With an empty US economic docket, the US bond yield dynamics and the broader market risk sentiment might continue to act as key determinants of the pair’s momentum through the NY trading session. 

On Tuesday, Chinese data dump might influence investors’ risk appetite and eventually provide some meaningful impetus later during the early Asian session.

Technical levels to watch

Any subsequent up-move is likely to confront resistance near the 109.80-85 region, above which the pair is likely to surpass the 110.00 handle and head towards testing the very important 200-day SMA hurdle near the 110.15 region.

On the flip side, any meaningful retracement is likely to find immediate support near 109.20 level and is followed by the 109.00 handle, which if broken might accelerate the fall further towards the 108.70-65 support area.

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