USD/JPY falters ahead of 111.00 mark, surrenders early gains to over 1-week tops

   •  Fails to capitalize on the early uptick and remained capped amid a subdued USD demand.
   •  Fading safe-haven demand continues to weigh JPY and might help limit further downside.
   •  Traders now eye US economic releases in order to capture some short-term opportunities.

The USD/JPY pair failed to capitalize on the early uptick to over one-week tops and has now retreated to the lower end of its daily trading range, around the 110.60 region.
 
The pair built on the previous session's solid bounce from the key 110.00 psychological mark and was further supported by improving risk-sentiment, which tends to undermine the Japanese Yen's safe-haven status.

The ongoing recovery in the US Treasury bond yields eased concerns about the impending recession in the US and revived investors' appetite for riskier assets, evident from positive trading sentiment around equity markets.

The Japanese Yen further benefitted from today’s better than expected domestic data, showing that the unemployment rate unexpectedly fell to 2.3% in February as compared to 2.5% reported in the previous month.

This coupled with hopes of some progress in the US-China trade talks provided an additional boost, albeit a subdued US Dollar price action turned out to be the only factor keeping a lid on any strong follow-through momentum.

From a technical perspective, the pair stalled its positive move and failed near a confluence resistance – comprising of 100 & 200-day EMA. Hence, it would be prudent to wait for a sustained break through the mentioned barrier before positioning for any further up-move.

Later during the early North-American session, the US economic docket – highlighting the release of the Fed's preferred inflation gauge - core PCE Price Index m/m, will now be looked upon for some meaningful trading opportunities on the last trading day of the week.

Technical levels to watch