USD/JPY regained positive traction on Monday and recovered a major part of the post-NFP losses. The risk-on mood undermined the safe-haven JPY and remained supportive of the positive move. A pickup in the US Treasury yields eased the USD bearish pressure and remained supportive.
The US dollar is attempting to move higher against the Japanese yen currency after bears failed to gain traction below the 109.00 psychological level which coincides with the 50% retracement level, which is the neckline of a bearish head and shoulders pattern. It is possible that the USD/JPY pair could be headed towards the 110.00 area if the 108.40 level continues to hold. A break above the 109.30 level should increase technical buying pressure towards the USDJPY pair.
The USD/JPY pair is only bullish while trading above the 109.00 level, key resistance is found at the 109.30 and 110.00 levels. The USD/JPY pair is only bearish while trading below the 109.00 level, key support is found at the 108.40 and further below awaits 107.5 levels.
