USD/JPY Price Analysis: Bulls remain hopeful while above critical 21-DMA

• USD/JPY jumps back on the bids in tandem with the US Treasury yields.
• 21-DMA is the levels to beat for the bears, as risk-off mood lifts the USD.
• RSI inches higher above the midline, more upside remains likely?  

USD/JPY is trading above 114.00, looking to extend Friday’s sell-off to weekly lows of 113.58, as the US Treasury yields rebound across the curve ahead of this week’s Fed minutes.

Expectations that the Fed could offer any hints on the timing of a rate hike fuel a renewed upside in the yields, in turn, benefiting the US dollar. The greenback also takes advantage of the prevalent risk-off market profile, courtesy of the concerns about European COVID-19 curbs.

Meanwhile, investors digest the latest comments from Japan on a potential oil reserves release. The broader market sentiment is expected to lead the way going forward.

USD/JPY’s daily chart shows that the price has managed to recapture the critical horizontal 21-Daily Moving Average (DMA) at 113.89.

On Friday, the major briefly dipped below the latter but managed to give a daily closing above it, keeping the buyers hopeful.

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