The USD/JPY pair struggled to sustain its move beyond 100-day SMA hurdle and has now surrenders all of its early gains to one-month high near 112.10 region.
The pair on Monday caught some strong buying interest and surged to its highest level since May 25 despite of the disappointing release of durable goods orders data from the US and a sharp reversal in the US equity markets, which tends to derive the Japanese Yen's safe-haven demand.
• USD longs steady, JPY shorts edged lower - Rabobank
The pair struggled to build on previous session's strong up-move and retreated around 30-pips from session tops, to currently trade near 111.80 region, amid a mildly weaker tone around the key US Dollar Index.
However, a modest up-tick in the US Treasury bond yields and a mildly positive sentiment around Japanese equity markets was seen lending some support and collaborated towards limiting any immediate sharp downslide for the major.
Later during the NA session, the release of CB Consumer Confidence Index would now be looked upon for some short-term trading impetus ahead of speeches by Philadelphia Fed President Patrick Harker and the Fed Chair Janet Yellen.
• US: Consumer confidence may ebb - AmpGFX
Technical levels to watch
Omkar Godbole, Analyst and Editor at FXStreet writes: "Repeated rebound from 111.00 region established a higher bottom formation on the 4-hour chart. The subsequent inverse head and shoulder breakout has opened doors for 114.82 (target as per the measured height method). However, the 4-hour RSI is close to being overbought; hence the bullish move may run out of steam around 112.79 levels. On the downside, only a daily close below 111.00 would signal bullish invalidation."
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