USD/JPY sits near weekly tops, eyeing to reclaim 110.00 mark

• USD/JPY regains some positive traction and moves back closer to weekly tops.
• The prevalent risk-on mood continued weighing on the JPY’s safe-haven status.
• The USD gets an additional boost from a goodish pickup in the US bond yields.

The USD/JPY pair climbed back closer to weekly tops, with bulls making a fresh attempt towards reclaiming the key 110.00 psychological mark.

Following the previous session's intraday pullback, the pair managed to regain some positive traction on Wednesday and was being supported by a combination of supporting factors.

Bulls await a sustained move beyond 110.00 mark

The prevailing positive mood around equity markets – despite concerns about the outbreak of coronavirus – continued weighing on the Japanese yen's perceived safe-haven status.

The risk-on flow was reinforced by a goodish pickup in the US Treasury bond yields, which provided an additional boost to the already stronger US dollar and remained supportive.

It, however, remains to be seen if the pair is able to capitalize on the positive move or once again struggle to make it through the 110.00 mark amid absent relevant market-moving economic data.

Meanwhile, the Fed Chair Jerome Powell's second day of testimony, this time before the Senate Housing Committee, will be looked upon to grab some short-term trading opportunities.

Technical levels to watch