USD/JPY hammered down to session lows, further below mid-111.00s amid declining US bond yields

   •  Softer US wage growth data triggers a sharp intraday slide in the US bond yields.
   •  The USD witnesses a modest pullback and further collaborates to the pair’s slide.

The USD/JPY pair faded an intraday bullish spike to 111.70 area and tumbled to fresh session lows in the last hour, eroding the previous session's modest gains.

The pair failed to capitalize on the post-NFP up-move, rather met with some aggressive supply in what was seen as a delayed reaction to softer US wage growth data. The disappointment was evident from a sharp intraday turnaround in the US Treasury bond yields and prompted some fresh selling at higher levels.

This coupled with a modest US Dollar pullback further collaborated to the pair's sharp intraday slide, with a strong opening in the US equity markets, which tends to undermine the Japanese Yen's relative safe-haven status, doing little to lend any support or ease the bearish pressure, at least for the time being.

It would now be interesting to see if the pair is able to find any buying interest at lower levels or the current slide marks the resumption of the recent corrective slide from YTD tops as market participants now look forward to scheduled speeches by a slew of influential FOMC members for some fresh impetus.

Technical levels to watch