USD/JPY jumps to session tops near mid-111.00s

The greenback regained traction against its Japanese counterpart, helping the USD/JPY pair to snap four consecutive days of losing streak and jumped to a three day high level near mid-111.00s.

Following a weekly bearish gap, the major caught some fresh bids and managed to rebound from the 111.00 neighborhood despite of BOJ’s Summary of Opinions' for the June 15th and 16th meeting, which suggested that the Japanese economy has been turning toward a moderate expansion.

A modest up-tick in the US Treasury bond yields, which although has failed to extend any support to the US Dollar was seen driving the pair higher. This coupled with a improvement in investors' risk appetite, as depicted by a positive trading sentiment around equity markets, further weighed on the Japanese Yen's safe-haven appeal and collaborated to the pair's up-move at the start of a new trading week. 

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Moving ahead, traders now look forward to the release of durable goods orders data from the US for some fresh impetus. In the meantime, broader market risk sentiment and the US bond yield dynamics should continue to act as key determinants of the pair's movement through European session on Monday. 

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Technical levels to watch

A strong follow through buying interest has the potential to continue boosting the pair further towards 111.75-80 resistance area en-route the 112.00 handle. On the downside, 111.15-10 area now becomes immediate support to defend, which if broken is likely to accelerate the slide towards 110.70-65 horizontal support ahead of 111.30 support.