USD/JPY bulls making a fresh attempt to conquer 107.00 handle

   •  Surging US bond yields help gain some fresh traction.
   •  Investors now pricing in a second Fed rate hike in June.
   •  Risk-on mood provides an additional boost.

The USD/JPY pair quickly reversed the post-NFP retracement and is now making a fresh attempt to decisively break through the 107.00 handle.

Despite mixed details from today's US monthly jobs report, which prompted some US Dollar weakness, the pair gained some fresh traction and was seen tracking a sudden spike in the US Treasury bond yields, led by increasing likelihood of a second Fed rate hike move in June.

Adding to this, a fresh wave of risk-on trade, as depicted by a goodish rebound in the European bourses and strong opening in the US equity markets, further weighed on the Japanese Yen's safe-haven appeal and supported the pair's strong bid tone. 

Nevertheless, the pair remains on track to post strong weekly gains, recovering a major part of last week's slump to the lowest level since early Nov. 2016. 

Technical levels to watch

Momentum beyond the 107.00 handle could get extended towards the 107.30-35 supply zone, above which the pair seems all set to head towards challenging 107.75-80 hurdle before eventually darting towards the 108.00 round figure mark.

On the flip side, the 106.75-70 area now seems to have emerged as an immediate support, which if broken might now drag the pair below mid-106.00s towards testing its next major support near the 106.10-106.00 region.