USD/JPY climbs to fresh 2019 highs above 110.30

• US Dollar Index continues to climb toward 97.
• European stocks post decisive gains on Monday. 
• US 10-year T-bond yield rebounds to support the greenback.

After closing the previous week nearly 40 pips higher, the USD/JPY pair started the week on a positive note and pierced through the 110 handle on its way to a fresh 2019 high of 110.31. As of writing, the pair was trading a couple of pips below that level, adding 0.44% on a daily basis.

Improved market sentiment and a broadly stronger greenback on Monday provided the fuel to the pair upsurge. Major European equity indexes rebounded sharply today after suffering heavy losses and last week and made it difficult for the JPY to find demand as a safe-haven. Furthermore, the 10-year T-bond yield, which is highly correlated with the pair, is looking to snap its 4-day losing streak and was last up 0.75% on the day.

The US Dollar Index extended its rally into an eighth straight day boosted by the rising T-bond yields and another sharp drop in the GBP/USD pair amid the disappointing GDP data from the UK. The DXY, which touched its highest level since January 1 at 96.87, is now rising 0.2% at 96.82.

The risk-on mood is also lifting the S&P 500 Futures and is suggesting that Wall Street is likely to open in the positive territory. In the absence of macroeconomic data releases from the U.S., the risk perception is likely to stay as the primary driver of the pair's price action.

Key technical levels