USD/JPY finds support near 107.50, rebounds modestly ahead of data

• 10-year US T-bond yield slumps to lowest level since November 2016.
• US Dollar Index stays in a tight range below the 97 mark. 
• Coming up: ADP employment change, Services PMI data from the US.

After losing nearly 50 pips and closing the day below the 108 mark on Tuesday, the USD/JPY pair extended its slide and touched its lowest level in a week at 107.54. With investors moving to the sidelines ahead of today's macroeconomic data releases, the pair is consolidating its daily losses at 107.66, losing 0.21% on a daily basis.

Although the greenback stays relatively resilient against its major rivals following the rally witnessed in the US Dollar Index on Monday, the strengthening demand for safe-havens keeps the bearish pressure on the pair intact.

The 10-year US Treasury bond yield, which lost nearly 3% yesterday and slumped below the critical 2% mark, continued to push lower to help the JPY preserve its momentum. At the moment, the 10-year T-bond yield is at its lowest level since November 2016 at 1.953%, losing more than 1% on the day. 

Later in the session, ADP private sector employment report, trade balance, weekly jobless claims and the Markit Services and ISM Non-Manufacturing PMI data will be featured in the U.S. economic docket.

Technical levels to watch for