USD/JPY jumps to fresh session tops, gains further beyond 106.00 handle

   •  A modest USD rebound helps build on early recovery move.
   •  A renewed uptick in the US bond yields supports the up-move.

The USD/JPY pair continued gaining some positive traction through the early European session and is currently placed near session tops, comfortably above 106.00 handle. 

Against the backdrop of a goodish pickup in the US Treasury bond yields, a modest US Dollar rebound further collaborated to the pair uptick over the past couple of hours. The up-move might remain capped amid a sea of red across European equity markets, which was seen underpinning the Japanese Yen's safe-haven demand. 

The pair, however, has managed to hold its neck above the 106.00 handle and in absence of any major market moving economic releases, a follow-through up-move, backed by some fresh short-covering, now looks a distinct possibility. 

Later during the NY trading session, comments by FOMC members - Minneapolis Fed President Neel Kashkari and Governor Lael Brainard, might influence the USD price dynamics and provide some fresh trading impetus. 

Technical levels to watch

Immediate resistance is pegged near the 106.35-40 area, above which the pair is likely to dart towards reclaiming the 107.00 handle. On the flip side, 105.85 level now becomes an immediate support to defend, which if broken might drag the pair back towards an important support near mid-105.00s.