USD/JPY bulls eyeing a decisive breakthrough 110.00 handle

   •  Resurgent US bond yields help revive USD demand and remain supportive.
   •  Easing trade tensions further weigh on JPY’s safe-haven demand.
   •  Today’s release of US monthly retail sales data might now set the tone. 

The USD/JPY pair continued gaining strong bids for the second consecutive session, with bulls now attempting a fresh move towards conquering the key 110.00 psychological mark.

The pair built on previous session's strong up-move and was further supported by some renewed US Dollar buying interest. Easing US-China trade tensions pushed the US Treasury bond yields higher and was eventually seen underpinning demand for the greenback since the US trading session on Monday.

The US President Donald Trump injected some fresh optimism ahead of tentative trade talks between the world's two largest economies this week and pledged to help Chinese telecom giant, ZTE to get back to business. 

Meanwhile, a mixed trading sentiment around Asian equity markets did little to influence the Japanese Yen's safe-haven demand, with the USD/US bond yield dynamics supportive of the pair's strong bid tone on Tuesday.

On the economic data front, the release of US monthly retail sales data would grab all the attention and provide some meaningful impetus later during the early NA session. 

Technical levels to watch

Momentum beyond the 110.00 handle is likely to confront resistance at the very important 200-day SMA, currently near the 110.15 region, above which the pair seems all set to surpass the 111.00 mark and test its next hurdle near the 111.30 area.

On the flip side, retracement back below 109.75-70 are could drag the pair back towards 109.35 horizontal support, which if broken might turn the pair vulnerable to head back towards testing the 109.00 round figure mark.