USD/JPY reaches fresh two-week highs, 111 on sight

The selling pressure around the JPY is nothing but unabated so far on Tuesday, now pushing the USD/JPY pair to a new two-week high at 110.70. At the moment, the pair is trading at 110.65, up 0.8% on the day.

Although USD/JPY failed to close the day above 110 on Monday, it didn't take long for the pair to gather some bullish momentum as the risk appetite remained as the dominant factor in the markets. All the major stock indexes throughout the world are adding to yesterday's strong gains on Tuesday, reflecting the improved sentiment.

• JPY looks to risk-appetite trends – Danske Bank

As the U.S. stocks are also pointing to a strong opening on Tuesday, the USD/JPY pair could remain bid during the NA session. Additionally, the US Dollar Index is making another attempt towards 99, supporting the pair's rise. As of writing, the index was flat on the day at 98.90.

Technical outlook

The next target for the pair could be seen at 111 (psychological level) followed by 111.60 (Apr. 10 high) and 112.20 (Mar. 31 high). On the flip side, with a break below 110 (200-DMA/psychological level), the pair could aim for 109.60 (Monday's low) and 108.90 (Apr. 21 low).