USD/JPY jumps back above mid-105.00s, closer to Tuesday’s swing high

   •  Easing trade-war fears/geopolitical developments help regain traction.
   •  A follow-through USD demand remains supportive of the up-move.
   •  Traders eye final US Q4 GDP print for some fresh impetus.

The USD/JPY pair caught some fresh bids and jumped back above mid-105.00s, inching back closer to previous session's swing high.

Against the backdrop of easing fears of a global trade war, the latest positive developments in the Korean peninsula helped the pair regain some positive traction during the Asian session on Wednesday. 

This coupled with a follow-through USD buying interest, with the key US Dollar Index climbing back above the 89.00 handle, remained supportive of the pair's up-move to the 105.75 region.

It, however, remains to be seen if bulls are able to build on the up-move and reclaim the 106.00 handle amid some renewed risk-aversion trade, which tends to underpin the Japanese Yen's safe-haven demand.

Later during the early NA session, the final US Q4 GDP growth figures, expected to be revised higher, would influence the USD price dynamics and provide some fresh impetus.

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes: “Yesterday's gravestone doji-like candle suggests the erratic rally from the low of 104.63 (March 26 low) has ended at 105.90 and the pair could drop below 105.32, in which case the spot may challenge demand around 104.63 (Friday's low). A close below 104.63 would open doors for a drop to 101.19 - the starting point of the Trump rally.”

On the higher side, only a daily close above 106.64 (March 21 high) would abort the bearish view and could yield a rally to 107.91 (Feb. 21 high),” he adds further.