USD/JPY slides back closer to yesterday’s 2-week lows

After an initial uptick, the USD/JPY pair ran through some fresh offers and drifted into negative territory for the second consecutive session.

Currently trading around the 112.25-20 region, the pair has now moved back within striking distance of previous session's two-week lows amid persistent US Dollar selling bias. 

Uncertainty over the US President Donald Trump's tax overhaul plan pressurized the greenback through early European session on Wednesday and has been one of the key factors dragging the pair lower.

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The pair's slide over the past hour or so could also be attributed to a modest retracement in the US Treasury bond yields. This coupled with the prevalent cautious sentiment around European equity markets was also seen lending support to the Japanese Yen's safe-haven appeal and collaborated to the pair's fall. 

Today's key focus would remain on the FOMC meeting minutes, With December Fed rate hike action already priced in the market, investors would be looking for clues over the central bank's monetary policy outlook for 2018 in order to determine the next leg of directional move for the major.

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Technical levels to watch

A follow through weakness below 112.20 level is likely to accelerate the slide back towards the 112.00 handle en-route 200-day SMA support near the 111.90-85 region.

On the upside, immediate resistance is pegged near 112.50-55 area, above which the pair is likely to make a fresh attempt towards reclaiming the 113.00 handle before eventually darting towards 113.30 supply zone.