•  USD/US bond yields stall dovish FOMC minutes-led downslide. 
   •  JPY further weighed down by rebounding European equities. 
   •  Second-tier US economic data eyed for some fresh impetus.

The USD/JPY pair recovered a part of early steep decline and has managed to rebound around 40-pips from 1-1/2 week lows. 

The market now seems to have fully digested Wednesday's FOMC monetary policy meeting minutes, with a modest rebound in the US Treasury bond yields helping the US Dollar to stall its overnight profit-taking slide from fresh yearly tops. 

This coupled with a slight improvement in investors' risk appetite, as depicted by a goodish pickup in the European equity markets, further weighed on the Japanese Yen's safe-haven appeal and collaborated to the pair's modest rebound. 

Despite the pull-back, the pair, so far, has held in negative territory for the third consecutive session and remained below the very important 200-day SMA, and the key 110.00 psychological mark. 

In absence of any major market moving economic releases, the pair remains at the mercy of broader market risk sentiment and the USD/US bond yield dynamics ahead of Friday's US monthly durable goods orders data and the Fed Chair  Jerome Powell's scheduled speech.

Technical levels to watch

Any subsequent recovery move is likely to confront fresh supply near the 110.00 handle and is closely followed by 200-DMA resistance near the 110.15-20 region, above which the pair is likely to aim back towards conquering the 111.00 handle.

On the flip side, the 109.40-35 region might continue to act as an immediate support, which if broken might turn the pair vulnerable to break below the 109.00 handle and head towards testing its next support near the 108.80-70 region.

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