USD/JPY sits at multi-day tops, but struggling to break through mid-110.00s

The USD/JPY pair maintained its strong bid tone through early NA session and now sits at fresh multi-day tops around mid-110.00s.

With former FBI Director James Comey’s highly-anticipated testimony to the Senate Committee offering little to rattle the markets, strong bullish sentiment around the US Dollar has been the key factor contributing to the strong bid tone surrounding the major.

Meanwhile, as the dust settled on the UK political turmoil, improving investors' sentiment for riskier-assets, like equities, further drove flows away from traditional safe-haven assets and lifted the pair to multi-day tops. 

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With today's up-move, the pair has now reversed all of its weekly losses and hence, a follow through short-covering move still seems a distinct possibility amid absent fundamental drivers. 

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Technical levels to watch

A follow through buying interest beyond mid-110.50 level has the potential to lift the pair towards weekly highs resistance near 110.75 area ahead of the 111.00 handle. On the flip side, any pull-back from higher levels now seems to find immediate support near 110.10-110.00 region, which if broken could drag the pair back towards 109.70-65 intermediate support en-route multi-week lows support near 109.15-10 area.