USD/JPY consolidates in a range, around mid-108.00s

   •  Bulls struggle to build on the overnight uptick amid reviving safe-haven demand. 
   •  A modest USD weakness offset by positive US bond yields and helped limit downside.

The USD/JPY pair traded with a mild negative bias through the Asian session on Wednesday and eroded a part of the previous session's uptick to near one-week tops.

China's stimulus pledge to counter the economic slowdown prompted some risk-on trade on Tuesday and dented the Japanese Yen's relative safe-haven status. This coupled with a slump in European currencies provided a goodish lift to the US Dollar and helped the pair to gain some positive traction.

The uptick, however, lacked any strong follow-through and the pair remained well within previous week's broader trading range, with bulls failing to capitalize on the overnight uptick amid dovish Fed expectations and growing market concerns over a possible slowdown in Germany/Brexit uncertainties.

Currently hovering around mid-108.00s, a positive tone around the US Treasury bond yields did little to provide any meaningful bullish impetus, though turned out to be the only factor that seemed to help limit further downside, at least for the time being.

In absence of any major market moving US economic releases, the broader market risk-sentiment and the USD price dynamics might continue to act as key determinants of the pair's momentum through Wednesday's trading session. 

Technical levels to watch