USD/JPY hits fresh session tops, around mid-109.00s

   •  Fading safe-haven demand helps to gain some positive traction at the start of a new week.
   •  USD rebounds after Mester's hawkish comments and provides an additional boost.

The USD/JPY pair built on its steady climb from Asian session low level of 109.20 and refreshed daily tops in the last hour.

After Friday's indecisive move, forming a 'Doji' on daily charts, the pair caught some fresh bids at the start of a new trading week. A fresh wave of global risk aversion trade, as depicted by buoyant sentiment around equity markets, weighed on the Japanese Yen's safe-haven demand and underpinned the pair.

The latest leg of uptick over the past hour or so, lifting the pair back to mid-109.00s, could further be attributed to a modest US Dollar rebound, supported by Cleveland Fed President Loretta Mester's hawkish comments. 

It would now be interesting to see if the pair is able to build on the momentum or the up-move once again fizzles out near the key 110.00 psychological mark amid fading expectations about steeper Fed monetary policy tightening cycle. 

There aren't any major market-moving economic releases due from the US and hence, the USD price-dynamics might continue to act as an exclusive driver of the pair's momentum on Monday. 

Technical levels to watch

Immediate resistance is pegged near the 109.70-75 zone, above which the pair could make a fresh attempt towards conquering the 110.00 handle before eventually darting towards the very important 200-day SMA hurdle near the 110.15 region. 

On the flip side, the 109.20-15 region, followed by the 109.00 handle might continue to protect the immediate downside, which if broken might prompt some aggressive long-unwinding trade and accelerate the slide towards 108.65 support area.