USD/JPY falls to session low, around mid-110.00s

   •  A modest USD retracement triggers the initial leg of retracement. 
   •  A sudden fall in the Turkish Lira prompts some safe-haven buying.
   •  Sliding US Treasury bond yields add to the downward momentum.

The USD/JPY pair extended its intraday retracement slide from 50-day SMA and dropped to fresh session lows, around mid-110.00s in the last hour.

The pair, for the second consecutive session, struggled to build on its early momentum beyond the 111.00 handle, with some renewed US Dollar weakness prompting fresh selling since the early European session on Friday.

Adding to this, a slight deterioration in investors' appetite for riskier assets, triggered by a sudden fall in the Turkish Lira, now down over 6% against the buck, boosted the Japanese Yen's safe-haven appeal and exerted some additional downward pressure. 

The Lira's vulnerability was also seen causing some jitters across European equity markets and the risk-off mood was further reinforced by a sharp slide in the US Treasury bond yields, which collaborated to the pair's negative momentum.

The pair is now gradually drifting back closer to 100-day SMA support and the lower end of its weekly trading range, below which a fresh wave of technical selling could accelerate the downfall on the last trading day of the week. 

Technical levels to watch

Immediate support is pegged near 110.35-30 area (100-day SMA) and is followed by the key 110.00 psychological mark, below which the pair is likely to head towards testing its next support near the 109.40-35 region.

On the flip side, momentum back above 110.75 level might continue to confront fresh supply the 111.00-111.10 region, which if cleared might trigger a short-covering bounce towards 111.40-45 zone (weekly tops) en-route the 112.00 handle.