USD/JPY jumps to over two-week highs on reviving risk appetite

The USD/JPY pair built on previous session's hefty gains and has now jumped to near 2-1/2 week tops, around mid-111.00s.

Global risk-on trade, on relief over the first round of the French Presidential election, continued weighing on the Japanese Yen's safe-haven appeal and assisted the pair to prolong its ongoing recovery move for the third consecutive session. 

Moreover, surging US treasury bond yields, amid renewed optimism on expected tax reforms announcement by the US President Donald Trump on Wednesday, helped the key US Dollar Index to reverse early losses and further collaborated to the pair's strong up-move to the highest level since April 10.

With an empty US economic docket, readjustment trade is likely to be a dominant theme, ahead of Thursday's BOJ monetary policy decision, and might eventually result into some volatile price-action later during the day. 

   •  BoJ to keep its monetary policy unchanged – Danske Bank

Technical levels to watch

On a sustained move beyond 111.50 level, a fresh bout of short-covering is likely to lift the pair beyond 111.80-85 resistance towards reclaiming the 112.00 handle. On the downside, any retracement back below 111.30-25 immediate support now seems to attract fresh buying interest near the 111.00 handle, below which the pair is likely to head back towards 110.60 important horizontal support.