The USD/JPY pair edged higher through the European session and was last seen hovering near the top end of its daily trading range, around the 105.75 region. The pair caught some fresh bids on the first day of a new trading week and recovered a part of the previous session's sharp intraday rejection slide of over 175 pips from the 107.00 neighborhood. The move-up was supported by the prevalent risk-on mood, which tends to undermine the safe-haven Japanese yen.
The already stronger global risk sentiment got an additional boost on Monday following the release of better-than-expected Chinese Manufacturing and Services PMI prints. The Japanese yen was further pressured by expectations that Japan's next leader will continue the 'Abenomics' economic revival program.
