USD/JPY hits fresh session low near 110.60 level

The USD/JPY pair extended previous session's reversal from one-week high and remained under some selling pressure on Tuesday, meandering around session low near 110.70-60 band touched in the last hour.

Overnight remarks by the Fed Chair Janet Yellen, indicating additional rate-hike actions, failed to assist the key US Dollar Index to build on early up-move to near 3-week tops. Meanwhile, escalating geopolitical risk in the Middle East, after last week’s US missile strike on a Syrian airbase, remains supportive for the Japanese Yen's safe-haven appeal.

Adding to this, the prevalent risk-off mood, as depicted by negative trading sentiment in Asian equity markets and reaffirmed by the ongoing slide in the US treasury bond yields, has also been driving flows towards traditional safe-haven assets and collaborating to the pair's downslide for the second consecutive session.

With the only scheduled release of JOLTS job openings data from the US economic docket, the pair remains at the mercy of broader market risk sentiment and the US bond yield dynamics. 

Technical levels to watch

Bears would be eyeing for a test of 110.50 immediate support, below which the pair is likely to head back towards multi-month lows support near 110.15-10 region. On a sustained break below this immediate strong support, the pair is likely to accelerate the slide towards 109.70 intermediate support, en-route 109.20-15 strong horizontal support. 

Meanwhile on the upside, any recovery attempts might now confront immediate resistance near 111.00-111.10 area, which if cleared might lift the pair back towards mid-111.00s. A follow through momentum has the potential to continue boosting the pair further towards its next major hurdle near the 112.00 handle.