USD/JPY extends overnight corrective slide from 3-month tops

   •  Moves farther from Wednesday’s 3-month highs 
   •  Retracing US bond yields collaborating to the downside

The USD/JPY pair remained under some selling pressure through Asian session on Thursday and extended previous session's retracement from fresh 3-month tops.

With investors largely ignoring Wednesday's stronger durable goods orders and new home sales data from the US, a modest retracement in the US Treasury bond yields added to the US Dollar's overnight weakness. 

Adding to this, a moderate risk-off mood supported the Japanese Yen’s safe-haven appeal and further collaborated to the pair’s negative bias for the second consecutive session.

Meanwhile, optimism over Trump's drive to overhaul the US tax code and speculations that the next Fed Chair could be more hawkish did little to lend any support and stall the pair's slide to session lows, around the 113.40-45 region. 

Today's US economic docket, featuring the release of usual weekly jobless claims, goods trade balance, prelim wholesale inventories and pending home sales data, would be looked upon for some fresh trading impetus. 

In the meantime, the ECB-led volatility in the financial markets might influence the Japanese Yen's safe-haven demand and also help traders grab some short-term opportunities. 

Technical levels to watch

Immediate support is pegged near 113.20 level, below which the corrective slide could get extended towards 112.85-80 horizontal support. On the upside, any momentum back above mid-113.00s might now confront fresh supply near 113.70-75 resistance, which if cleared could lift the pair back above the 114.00 handle.