USD/JPY refreshes session tops on surging US bond yields

   •  Surging US bond yields helps offset risk-off mood. 
   •  Subdued USD demand does little to stall the up-move.
   •  Thursday's BOJ decision eyed for fresh directional impetus. 

The USD/JPY pair built on its steady up-move through the early NA session and has now jumped to fresh session top in the 113.30 region. 

A sharp upsurge in the US Treasury bond yields, which although failed to revive the US Dollar demand, seems to be the only factor driving the pair higher for the straight session.

Meanwhile, the market seems to have largely negated a weaker trading sentiment around equity markets, which tends to underpin the Japanese Yen's safe-haven appeal, with the US bond yield dynamics acting as an exclusive driver of the pair's strong up-move. 

It, however, remains to be seen if the pair is able to extend its bullish momentum as focus shifts to the BOJ monetary policy decision, due to be announced during the Asian session on Thursday.

Heading into the next key event risk, today's release of existing home sales data from the US would be looked upon for some short-term trading opportunities. 

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes, "the 4 hours chart for the USD/JPY pair is bullish, as the 100 SMA has extended its advance below the current price, now converging with the 200 SMA but aiming to cross it, while technical indicators keep grinding higher within positive territory, with limited but persistent momentum. The pair has an immediate resistance in the 113.35 price zone, with a break above it favoring an extension toward the critical mid-term resistance at 114.40."