USD/JPY consolidates in a range below 112.00 mark/multi-week tops

   •  The prevalent USD selling bias fails to assist the pair to build on the recent up-move.
   •  Risk-on mood/US-China trade optimism undermines JPY and helps limit the downside.

The USD/JPY pair oscillated in a narrow trading band at the start of a new trading week and was seen consolidating the recent strong gains to multi-week tops. 

The pair continued with its struggle to sustain/build on the momentum further beyond the 112.00 handle, with a combination of diverging forces failing to provide any meaningful impetus and leading toa subdued/range-bound price action through the Asian session on Monday 

Persistent US Dollar selling bias, amid firming expectations that the Fed will hold interest rates steady through 2019, turned out to be one of the key factors keeping a lid on any strong follow-through up-move, through the prevalent risk-on mood helped limit deeper losses, at least for now.

Against the backdrop of Friday's stronger Chinese trade balance data, renewed optimism over a possible US-China trade deal bolstered investors' appetite for riskier assets and undermined the Japanese Yen's safe-haven demand, which eventually extended some support to the major.

Moreover, investors also seemed reluctant to place any aggressive bets at the start of a holiday-shortened week, with most major financial markets closed on Friday for the start of the Easter holidays, and relatively thin US economic docket - featuring the release of Empire State Manufacturing Index.

Hence, it would be prudent to wait for a strong follow-through buying, possibly beyond YTD swing highs - around the 112.15 region set in March, before traders start positioning for any further appreciating move in the near-term.

Technical levels to watch