USD/JPY steadily climbs to session tops, eyeing to reclaim 110.00 mark

• USD/JPY attracts some dip-buying after disappointing Japanese Q4 GDP growth figures.
• The safe-haven JPY was also weighed down by improvement in the global risk sentiment.
• Holiday in the US might hold investors from placing aggressive bullish bets and cap gains.

The USD/JPY pair reversed an early dip and climbed to fresh session tops in the last hour, with bulls making a fresh attempt to reclaim the key 110.00 psychological mark.

The pair initially edged lower on the first day of a new trading week but managed to attract some dip-buying following the downbeat release of preliminary figures Q4 GDP figures from Japan.

JPY weighed down by a combination of factors

The world's third-largest economy shrank 1.6% during the three month to December – the largest drop in six years – while the annual growth rate also contracted more-than-expected by 6.3%.

This coupled with a slight improvement in the global risk sentiment undermined the Japanese yen's perceived safe-haven demand and helped the pair to gain some positive traction on Monday.

On the other hand, the US dollar consolidated its recent strong gains and stood tall near 4-1/2 month tops, albeit bulls might be reluctant to place any aggressive bets amid a holiday in the US.

The US bank will remain closed on Monday in observance of Presidents' Day. Hence, it will be interesting to see if the pair is able to capitalize on the move or meets with some fresh supply at higher levels.

Technical levels to watch