USD/JPY off lows, still deep in the red below mid-110.00s

   •  An uptick in the US bond yields/follow-through USD buying lends some support.
   •  Risk-off mood underpins JPY’s safe-haven demand and now seemed to keep a lid. 

The USD/JPY pair has managed to recover around 25-30 pips from daily lows, albeit remained well below Asian session high level of 110.76.

The global flight to safety remained a key theme at the start of a new trading week and continued benefitting the Japanese Yen's relative safe-haven appeal against its major counterparts. The pair opened with a bearish weekly gap and dropped to 1-1/2 month lows, weighed down by growing concerns over currency crisis in Turkey.

The bearish pressure, however, now seems to have abated, at least for the time being, with the pair managing to find some support ahead of the key 110.00 psychological mark amid some goodish pickup in the US Treasury bond yields and a follow-through US Dollar buying interest. 

The uptick, however, seemed lacking conviction as investors feared of a possible contagion into other markets and amid empty economic docket. Hence, it would be prudent to wait for a strong follow-through buying before confirming that the pair might have bottomed out in the near-term.

Technical levels to watch

Immediate resistance is pegged near the 110.75 area (session top) and is followed by the 111.00 handle, above which the pair seems more likely to aim towards challenging the 111.35-40 supply zone.

On the flip side, the 110.10-110.00 region might continue to act as an immediate support, which if broken now seems to accelerate the slide towards 109.40-35 support area en-route the 109.00 handle.