USD/JPY surrenders early gains, retreats back below 107.00 handle

   •  A fresh wave of USD weakness fails to assist build on early gains.
   •  Fading safe-haven demand does little to lend any meaningful support.
   •  This week’s important US macro releases eyed for fresh impetus.

The USD/JPY pair failed to capitalize on early up-move and has now surrendered the majority of its early gains, retreating around 25-pips from session tops.

Despite a goodish pickup in the US Treasury bond yields, the US Dollar failed to preserve early gains and was seen as one of the key factors behind the pair's retracement slide from an intraday high level of 107.20. 

Meanwhile, improvement in global risk appetite, amid hopes that a full-blown US-China trade war could be averted, did little to influence the Japanese Yen's safe-haven demand and provide any meaningful impetus to the major. 

In absence of any major market moving economic data, the USD price dynamics might continue acting as an exclusive driver of the pair's momentum at the start of a new trading week. 

Moving ahead, this week's release of US consumer inflation figures along with the latest FOMC meeting minutes would now be looked upon for some meaningful directional impetus during the second half of the week. 

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: “The pair is short-term neutral according to readings in the 4 hours chart, as despite developing above moving averages, the indicators continue directionless. The Momentum in the mentioned chart is now stuck around its mid-line, while the RSI turned modestly lower around 53. The pair set a high last week at 107.48, being the level to break to confirm additional gains, while the key support for today is 106.77, the low achieved on Friday.”