USD/JPY flirting with lows near mid-110.00s

The greenback selling interest seems to have returned since NY session on Monday, dragging the USD/JPY pair to session lows in the region of mid-110.00s.

The pair failed to build on the post-NFP recovery from 1-1/2 month lows and met with some fresh supply near the 111.00 handle. With markets looking past Friday's strong US jobs report, overnight dovish remarks from Fed's Kashkari and Bullard held the US Dollar bulls on the back foot. 

Adding to this, a fresh wave of global risk aversion trade, as depicted by weaker sentiment around Asian equity markets was also seen benefitting the Japanese Yen's safe-haven appeal and further collaborated to the pair's offered tone. 

Today's economic calendar hold little in terms of any major market moving releases and hence, broader market risk sentiment and the USD price dynamics would continue to act as key determinants of the pair's movement through Tuesday's trading session. 

Technical levels to watch

Immediate support is pegged near 110.25 level, below which the pair could slide back below the key 110.00 psychological mark and head towards retesting last week's swing lows support near the 109.85 region. On the flip side, 110.85 level now seems to have emerged as an immediate resistance, above which the pair is likely to make a fresh attempt towards conquering the 111.00 handle en-route its next hurdle near the 111.25-30 region.