USD/JPY eases from 2-month tops, downside seems limited

The USD/JPY pair edged lower through the Asian session on Wednesday and eroded a part of the previous session's goodish move up to over two-month tops.
 
The pair on Tuesday rallied around 75 pips intraday and was being supported by improving risk sentiment. Against the backdrop of a partial US-China trade deal, growing optimism over an orderly Brexit boosted investors' appetite for riskier assets and weighed on the Japanese Yen's perceived safe-haven status.

Weighed down by weaker US bond yields/USD

The positive momentum seemed rather unaffected by a turnaround in the US Dollar, primarily on the back of a strong rally in the British Pound. This coupled with the ongoing slide in the US Treasury bond yields undermined demand for the Greenback on Wednesday and seemed to exert some downward pressure.
 
Meanwhile, given the overnight breakthrough the 108.45-50 supply zone, the downtick is likely to remain limited, rather is more likely to be seen as a buying opportunity for an eventual move beyond the 109.00 round figure mark as market participants look forward to the US macro data for a fresh impetus.
 
Wednesday's US economic docket highlights the release of monthly retail sales data for September, which will influence the USD price dynamics later during the early North-American session. This coupled with the broader market risk sentiment might further contribute towards producing some short-term trading opportunities.

Technical levels to watch