USD/JPY makes a fresh attempt to conquer 110.00 mark

   •  Bullish momentum seemed uninterrupted by a modest USD retracement.
   •  BoJ summary and risk-on mood weigh on JPY and remain supportive.
   •  Focus shifts to the latest US inflation figure, due later in the day.

The USD/JPY pair was seen building on previous session's strong gains, with bulls now eyeing for a follow-through move beyond the key 110.00 psychological mark. 

The pair continued gaining positive traction on Thursday and seemed unaffected by a modest US Dollar profit-taking slide. Even a subdued action around the US Treasury bond yields failed to interrupt the pair's bullish momentum back to three-month tops, touched last week.

Today's release of the BoJ Summary of Opinions, reaffirming the central bank's easy monetary policy stance, triggered the initial leg of uptick on Thursday. This coupled with the prevalent risk-on mood, as depicted by positive opening across European bourses and which tends to weigh on the Japanese Yen's safe-haven appeal, provided an additional boost and continued driving the pair higher.

Meanwhile, a follow-through technical buying, especially after yesterday's bullish breakthrough the 109.40 supply zone, could also be one of the factors behind the pair's steady climb through the early European session.

Moving ahead, today's US economic docket, highlighting the release of US consumer inflation figures, would now be looked upon for some fresh bullish impetus and would determine if bulls are able to make it through the very important 200-day SMA barrier.

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes, “only a close above 110.04 - 38.2 percent Fibonacci retracement of Jan/Mar sell-off - would signal a continuation of the rally from the recent low of 104.63.”