USD/JPY gains further beyond 109.00 mark, Trump eyed

   •  Strong follow-through USD buying helps reverse an early dip.
   •  A modest uptick in the US bond yields provides an additional boost.
   •  Focus remains on Trump’s announcement on the Iran nuclear deal.

The USD/JPY pair has managed to recover around 30-40 pips from session lows and is currently placed at daily tops, comfortably above the 109.00 handle. 

Following a brief pause earlier today, the recent US Dollar rally reignited since the early European session and once again helped the pair to quickly reverse a dip to sub-109.00 level. Bulls also seemed to track a modest uptick in the US Treasury bond yields, which further assisted the pair to build on its momentum back above the 109.00 handle.

The positive factors, to some extent, were partly negated by a slight deterioration in investors' risk appetite. The same is evident from weaker tone around equity markets that tends to underpin the Japanese Yen's safe-haven appeal and might contribute towards keeping a lid on any meaningful up-move.

The key focus, however, would be on the US President Donald Trump's decision on the Iran nuclear deal. The announcement, scheduled at 1800 GMT, is expected to infuse a fresh bout of volatility in the global financial markets and influence JPY's safe-haven demand, eventually providing some impetus.

Technical levels to watch

The 109.40 region might continue to act as an immediate resistance, above which the pair is likely to make a fresh attempt towards conquering the key 110.00 psychological mark and aim towards testing the very important 200-day SMA hurdle near the 110.15-20 region.

On the flip side, the 108.80-70 region now seems to have emerged as an immediate support, which if broken might prompt some aggressive long-unwinding trade and accelerate the fall towards the 108.00 handle with some intermediate support near the 108.25 level.