USD/JPY Price Analysis: Bounces off a dip below 50-DMA as Treasury yields recover

USD/JPY reverses half the previous sell-off amid a rebound within the US Treasury yields.
The pair recaptures 110.00, because the rebound from the 50-DMA extends.
Bulls looks to check the 21-DMA at 110.54 once more amid risk-on mood.
USD/JPY is reversing quite half Thursday’s slide within the American session, having recaptured the 110.00 level amid an upbeat market mood.

The shift within the risk sentiment has rescued the US returns on the market, in turn, driving the USD/JPY pair as high as 110.26.

As of writing, the main is adding 0.38% on the day, trading at 110.20, having hit a daily low of 109.73.

From a near-term technical perspective, the spot has managed to recover ground above the 50-Daily Moving Average (DMA) at 109.80.

This coincides with the uptick within the 14-day Relative Strength Index (RSI) at 48.43, edging higher towards the central line.

However, with the momentum indicator still lying beneath the 50 level, a test of the 21-DMA upside barrier at 110.54 appears elusive.

USD/JPY daily chart

On the downside, a daily closing below the 50-DMA critical support could reignite the downtrend, opening floors towards the 109.50 psychological level.

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