The USD/JPY pair was last seen trading near session tops, with bulls now awaiting a sustained move beyond the 107.00 round-figure mark.
Investors initially turned to the safe-haven Japanese yen amid concerns over a surge in new coronavirus infections. In fact, the World Health Organization (WHO) reported a record increase in global coronavirus cases on Sunday and led to some risk-aversion trade during the early part of trading activity on the first day of a new week.
However, a turnaround in the risk-sentiment drove flows away from traditional safe-haven assets and assisted the USD/JPY pair to quickly reverse an early dip to the 106.70-75 region. The pair bounced around 20-25 pips from daily lows, albeit some intraday US dollar weakness held investors from placing any aggressive bullish bets and capped the upside.