USD/JPY off lows, still weaker around 110.00 handle

The USD/JPY pair remained heavily offered for the second consecutive session and dropped to 8-week lows, albeit has managed to recover around 20-25 pips from lows to currently trade around the key 110.00 psychological mark. 

A fresh wave of global risk aversion trade, following N. Korea's statement that it is examining plans for a missile strike on the US Pacific territory of Guam, drove investors toward traditional safe-haven currencies, including the Japanese Yen and was seen weighing heavily on the major.

   •  N. Korea playing hard ball - UOB

The pair, however, attracted some buying interest at lower levels amid a modest pickup in the US Dollar, which was being underpinned by Tuesday's release of JOLTS job openings. Against the backdrop of last Friday's strong monthly employment details, the latest report on job openings seems to have revived hopes for further Fed rate hike action in 2017 and thus, helped limit further losses for the major.

   •  US: Job opening at a record high - ANZ

Today's US economic docket lacks any major market moving releases and hence, the pair remains at the mercy of broader market risk sentiment. 

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes: "Repeated rejection near 111.00 levels this month, followed by a break below the support at 109.84 [Aug 4 low], indicates the sell-off from the high of 114.49 has resumed. The spot could test support at 109.43 levels. An end of the day close below 109.43 would add credence to the rejection at the monthly 50-MA and open doors for a bigger sell-off to 108.00 levels. On the higher side, only a break above 111.00 would signal bearish invalidation."