USD/JPY jumps to fresh session peak, beyond mid-111.00s

The USD/JPY pair has managed to recover early lost ground to 111.00 neighborhood and has now jumped to fresh session tops, above mid-111.00s. 

The pair managed to attract some buying interest at lower levels amid a modest pick-up in the US Treasury bond yields, which tends to underpin the US Dollar demand.

Adding to this, a sharp recovery in European equity markets weighed on the Japanese Yen's safe-haven appeal and further collaborated to the pair's up-move through mid-European session. 

Today's US economic docket features the release of existing home sales data and would now be looked upon for some fresh trading imeptus. Meanwhile, broader market risk sentiment would continue to act as a key determinant of the pair's movement on Wednesday. 

   •  USD/JPY seen at 116.00 in 6-12 month – Danske Bank

Technical levels to watch

On a sustained momentum above monthly highs resistance near 111.80 region, the pair is likely to surpass the 112.00 handle and test its next hurdle near 1112.15 area. On the flip side, any pull-back might continue to find support near 111.10-111.00 region, which if broken would turn the pair vulnerable to head back towards testing 110.30 support area with some intermediate support near 110.70 level.