USD/JPY hits fresh multi-month tops, moves further beyond mid-110.00s

   •  Surging US bond yields remain supportive of the up-move on Thursday.
   •  Subdued USD demand does little to interrupt the bullish momentum.

The USD/JPY pair continued scaling higher through the early European session and is now placed comfortably above mid-110.00s, near 4-month tops. 

The pair continued gaining positive traction and has now added over 60-pips from an intraday low level of 110.07, touched earlier during the Asian session. Despite a subdued US Dollar demand, resurgent US Treasury bond yields helped the pair to build on this week's bullish break above the very important 200-day SMA. 

Traders also seem to have ignored the prevalent cautious sentiment around equity markets, with the US bond yield dynamics acting as an exclusive driver of the pair's ongoing bullish momentum on Thursday.

It would now be interesting to see if bulls are able to maintain their dominant position or opt to take some profits off the table, especially after the latest leg of sharp up-move of around 150-pips since the beginning of this week.

Next on tap would be the US economic docket, featuring the release of usual initial weekly jobless claims and Philly Fed Manufacturing Survey, which might provide some short-term trading opportunities later during the early NA session.

Technical levels to watch

A follow-through buying interest has the potential to continue lifting the pair further towards reclaiming the 111.00 handle en-route the next major hurdle near the 111.25-30 region. On the flip side, any meaningful retracement back below mid-110.00s now seems to find support near the 110.15 region (200-DMA), which is closely followed by the key 110.00 psychological mark.