USD/JPY keeps the red near session lows on softer US CPI

   •  Trump’s tweet escalates geopolitical tensions and underpins JPY’s safe-haven demand.
   •  US consumer inflation misses estimates and keeps exerting pressure on the USD.
   •  Investors now look forward to the FOMC meeting minutes for some fresh impetus.

The USD/JPY pair continued losing ground through the early NA session and retreated farther below the 107.00 handle, amid reviving safe-haven demand.

The US President Donald Trump's response to the Russian ambassador to Lebanon Alexander Zasypkin's overnight comments triggered a fresh wave of global risk aversion trade. 

The same was evident from a sudden drop in equity markets and sliding US Treasury bond yields, which eventually underpinned Japanese Yen and kept exerting downward pressure on the major.

The selling pressure remained unabated after the latest US CPI, released just a while ago, showed consumer prices decreased 0.1% m-o-m in March and did little to revive the US Dollar demand.

Investors now look forward to the release of FOMC meeting minutes, which will be closely scrutinized to assess the extent of Fed hawkishness and might eventually provide some fresh directional impetus.

Technical levels to watch

A follow-through weakness below 106.60 area is likely to accelerate the fall towards 106.30 intermediate support en-route the 106.00 handle. On the flip side, 107.00 handle now seems to act as an immediate resistance, above which the pair could make a fresh attempt towards clearing an important hurdle near the 107.40-50 region.