USD/JPY cycling its way back up to the week's highs near 108.50

• USD/JPY reversing week's declines on China's RRR cut.
• Market sentiment going around in circles as investors heave between bad data and fiscal easing policies.

USD/JPY is bumping into the 108.40 region, bolstered by recovering risk appetite on the back of China's RRR cuts in an effort to unlock further market liquidity.

The Dollar-Yen pairing is looking to finish a run into the week's opening prices near 108.50, after the pair initially dropped into the 107.90 region on Monday following China's abysmal Trade Balance figures. Investor sentiment has shifted for Tuesday, with traders shrugging off Monday's data miss and the People's Bank of China (PBoC) RRR cut, in a bid to unlock further market liquidity, and the rate cut is helping to ease sentiment pressures, allowing the Yen to take a step lower as Pacific sector traders step out of their safe haven.

USD/JPY Technical Levels