• USD/JPY witnessed subdued/range-bound price moves through the early North American session.
• The risk-on mood undermined the safe-haven JPY and acted as a tailwind amid rising US bond yields.
• The emergence of fresh USD selling failed to impress bullish traders or provide impetus to the major.

The USD/JPY pair extended its sideways price move through the early North American session and was last seen trading with modest intraday gains, just above the 115.00 psychological mark.

The pair struggled to capitalize on the previous day's goodish rebound from mid-114.00s, or a two-and-half-week low and witnessed subdued/range-bound trading on Wednesday. Renewed US dollar selling bias held back traders from placing bullish bets, though a combination of factors helped limit the downside for the USD/JPY pair.

As investors digest the recent developments surrounding the Russia-Ukraine saga, a generally positive tone around the equity markets undermined the Japanese yen's safe-haven status. Apart from this, a fresh leg up in the US Treasury bond yields further inspired bullish traders and extended some support to the USD/JPY pair.

The fundamental backdrop supports prospects for further gains. That said, the risk of an imminent Russian invasion of Ukraine warrants some caution. Hence, it will be prudent to wait for some follow-through buying before confirming that the pullback from the vicinity of the multi-year high, around the 116.35 area, has run its course.

There isn't any major market-moving economic data due for release from the US, suggesting that the focus will remain glued to fresh geopolitical developments. Apart from this, traders will take cues from the broader market risk sentiment and the US bond yields to grab some short-term opportunities around the USD/JPY pair.

Technical levels to watch