USD/JPY turns positive, up little around 109.25 level

   •  Investors looked past Friday’s mixed US monthly jobs report.
   •  Renewed USD buying helps the pair to regain positive traction.
   •  Fading safe-haven demand further supports the up-move.

The USD/JPY pair quickly reversed an early dip back closer to Friday's near 2-week lows and is currently placed at fresh session tops, around the 109.25 region. 

Investors seemed to have fully digested the latest US monthly jobs report, with some renewed US Dollar buying interest turning out to be one of the key factors behind the pair's goodish rebound of around 50-pips from sub-109.00 level. 

The headline NFP print showed that the US economy added 164K new jobs in April and average hourly earnings rose by a modest 0.1% on a monthly basis. The weaker-than-expected figures, however, were offset by a fall in the unemployment rate, to a 17-year low level of 3.9%, and an upward revision of previous month's reading to show an addition of 135K new jobs as compared to 103K reported earlier, and thus, did little to prompt any aggressive USD selling. 

Meanwhile, a positive trading sentiment around Asian equity markets was further seen weighing on the Japanese Yen's safe-haven demand and remained supportive of the pair's uptick at the start of a new trading week. 

In absence of any major market moving economic releases, the USD price-dynamics and broader market risk sentiment might continue to act as key determinants of the pair's movement. 

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes: “The rebound from the ascending trendline adds credence to the bullish price-relative strength index (RSI) divergence seen in the 1-hour chart and suggests scope for a re-test of the long-term descending trendline (drawn from the November 2017 high and December 2017 high) resistance, seen at 109.88.”

“Meanwhile, a close below the ascending trendline support (108.78) would shift risk in favor of a deeper pullback to 106.88 (April 17 low). A  break below that level would signal a violation of the higher lows pattern and put the USD bears/JPY bulls back into the driver's seat,” he further added.