USD/JPY bulls eyeing to reclaim 109.00 mark

• USD/JPY gains positive traction for the second consecutive session on Tuesday.
• Improving risk sentiment weighed on the JPY’s perceived safe-haven demand.
• A pickup in the US bond yields underpinned the USD and remained supportive.

The USD/JPY pair gained traction for the second consecutive session on Tuesday, with bulls now eyeing a move towards reclaiming the 109.00 round-figure mark.

China's measures to cushion the economic impact from the outbreak of the deadly coronavirus and pledge to do more remained supportive of improving global risk sentiment. The same was evident from a positive mood around equity markets and undermined demand for traditional safe-haven currencies, like the Japanese yen.

Improving risk sentiment/stronger USD supportive

On the other hand, the US dollar was being supported by Monday's release of stronger-than-expected US ISM Manufacturing PMI and got an additional boost from a strong pickup in the US Treasury bond yields. This eventually led to some follow-through buying around the major on Tuesday.

With the latest positive move, the pair has managed to break through 100-day SMA barrier. Hence, a subsequent strength beyond the 109.00 mark should pave the way for a further near-term appreciation amid absent relevant market moving economic releases from the US.

Technical levels to watch