USD/JPY bulls eyeing 110.00 mark in pre-NFP trade

   •  The BOJ announcement continues to weigh on JPY.
   •  Risk-off mood does little to revive JPY’s safe-haven demand.
   •  A modest USD rebound provides an additional boost.
   •  All eyes will remain glued to the key US monthly jobs report.

The USD/JPY pair held on to its strong gains through the mid-European session and is now eyeing a move beyond the key 110.00 psychological mark. 

The BOJ's decision to buy more long-term JGBs continued taking a toll out of the Japanese Yen. Adding to this, a goodish pickup in the US Dollar demand further collaborated to the pair's strong bid tone for the third consecutive session.

Meanwhile, a selloff in global equity markets, which tends to underpin the Japanese Yen's safe-haven appeal, seems to have been largely negated by a strong follow-through upsurge in the US Treasury bond yields and remained supportive of the pair's up-move to 1-1/2 week tops. 

With today's up-move, the pair has rebounded around 150-pips since the beginning of this week and now seems all set to snap three consecutive weeks of losing streak. 

Investors now look forward to the keenly watched US monthly jobs report, popularly known as NFP, which is expected to infuse some fresh volatility across global financial markets and provide some fresh impetus.

Technical levels to watch

A follow-through buying interest beyond the 110.00 handle is likely to accelerate the recovery move towards 110.45 support turned resistance before the pair eventually darts towards reclaiming the 111.00 round figure mark.

On the flip side, 109.40 level now seems to protect the immediate downside, which if broken might turn the pair vulnerable to again break below the 109.00 handle and retest 108.60 horizontal support.