USD/JPY retakes 107.00 handle and beyond

   •  Reviving USD demand helps regains traction.
   •  Fading safe-haven demand provides an additional boost.
   •  Japanese inflation figures did little to influence the move.

The USD/JPY pair caught some fresh bids on Friday and jumped back above the 107.00 handle, recovery part of previous session's sharp retracement slide.

The pair stalled overnight steep decline ahead of mid-106.00s and regained positive traction on the back of reviving US Dollar demand. Moreover, a slight improvement in investors' appetite for riskier assets was further seen weighing on the Japanese Yen's safe-haven appeal and collaborated to the pair's up-move, for the fifth session in the previous six. 

Meanwhile, the market had a rather muted reaction to the Japanese inflation figures, which showed annual core inflation rate was unchanged in January and remained below the BOJ's target of 2%. The data reinforced market expectations that the BOJ would continue with its ultra-loose monetary policy stance and kept the JPY bulls on the defensive. 

In absence of any major market moving economic releases from the US, broader market risk sentiment and the USD price action might continue to act as key determinants of the pair's momentum on the last trading day of the week. 

Technical levels to watch

Immediate resistance is pegged near 107.30 level, above which the pair is likely to aim towards clearing 107.75 supply zone and head towards reclaiming the 108.00 handle.

On the flip side, 106.75-70 area now seems to protect the immediate downside, which if broken would turn the pair vulnerable to drop back towards retesting the 106.00 round figure mark.