USD/JPY bulls attempting a fresh move beyond 106.00 handle

   •  Bulls tracking a modest pickup in the US bond yields.
   •  Risk-off mood/trade war fears likely to cap strong gains.

The USD/JPY pair reversed an early Asian session dip to 105.65 area, with bulls now eyeing a move further beyond the 106.00 handle. 

Despite a subdued US Dollar demand, the pair gained some positive traction and seemed to track some renewed pickup in the US Treasury bond yields. 

Meanwhile, the prevalent risk-off mood, triggered by increasing trade tensions between the US and China, underpinned the Japanese Yen's safe-haven demand and might now contribute towards keeping a lid on any further up-move. 

It would now be interesting to see if the pair is able to build on the momentum or the up-move is once again sold into as investors now look forward to this week's important macro releases for some fresh directional impetus.

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes: “A false break below 105.00 and a subsequent rally to 107.00 has weakened the bulls. Further, the  5,10 and 21 MAs have bottomed out, so the pair could attempt an upside break of the channel. If successful, it could end up creating an inverse head-and-shoulders pattern with neckline resistance of 106.96.”