USD/JPY sits near multi-day tops, bulls likely to aim towards 109.00 handle

• Renewed US-China trade optimism weighed on the JPY’s safe-haven status.
• Bulls further took cues from some follow-through uptick in the US bond yields.
• Tuesday’s US ISM non-manufacturing PMI will be eyed for some trading impetus.

The USD/JPY pair continued gaining positive traction for the third consecutive session on Tuesday and is currently placed at multi-day tops, around the 108.80-85 region.
 
Having shown some resilience below the 108.00 round-figure mark on Friday, the pair caught some bids following the release of mostly upbeat US monthly jobs report. The uptick got an additional boost on the first day of a new trading week from upbeat trade-related comments over the weekend, which undermined the Japanese Yen's safe-haven demand.

Trade optimism remained supportive

In an interview with Bloomberg Television on Sunday, the US Commerce Secretary Wilbur Ross said that the licenses for American companies to export certain technology products to China’s Huawei would be issued very shortly. This comes on the back of indications by the US officials last week that a trade deal could be signed as early as this month.
 
Apart from this, the Financial Times report suggested that the US administration is considering removing some existing tariffs on Chinese goods, which added to the growing trade optimism and lifted the global sentiment. The risk-on mood was further reinforced by some follow-through pickup in the US Treasury bond yields and remained supportive.
 
Moving ahead, Tuesday's US economic docket – highlighting the release of ISM non-manufacturing PMI print for the month of October – might influence the USD price dynamics and assist traders to grab some short-term opportunities later during the early North-American session.

Technical levels to watch