The USD/JPY pair retreated around 25-pips from daily highs and has now slipped back below the 111.00 handle.
With markets looking past last week's hawkish Fed decision, lack of follow through US Dollar buying interest failed to assist the pair to build on early up-move led by today's disappointing release of Merchandise trade balance data from Japan.
Adding to this, a softer tone surrounding the US Treasury bond yields also did little to underpin the greenback demand and provide any fresh bullish impetus for the major.
However, buoyant trading sentiment around global equity markets, which tends to weigh on the Japanese Yen's safe-haven appeal, seems to be only factor supporting a minor bid tone surrounding the major, at least for the time being.
Traders now look forward to any fresh news / development surrounding the Brexit negotiations for some volatility, which would influence demand for traditional safe-haven assets and provide some impetus for the major.
Also in focus would be on comments from the Chicago Fed President Charles Evans, which would be looked upon for reinforcement of the hawkish Fed outlook and also assist in determining the next leg of directional move.
Technical levels to watch
A follow through retracement back below 110.85 level is likely to accelerate the slide towards 110.50-45 horizontal support en-route 110.30 area and the key 110.00 psychological mark.
On the upside, momentum above session tops resistance near 111.20 region might continue to confront fresh supply near 111.45-50 region, which if cleared decisively has the potential to lift the pair towards 111.80 intermediate resistance ahead of the 112.00 handle.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.