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USD/JPY tumbles to lows near 112.00 handle, back closer to one-month lows

   •  Weighed down by renewed USD selling.
   •  Sliding US bond yields add to downward pressure.
   •  Focus remains on FOMC meeting minutes/US durable goods.
 
The greenback held weaker on Wednesday and is now dragging the USD/JPY pair back toward the lower end of its weekly trading range.

The pair remained under some selling pressure for the second consecutive session and moved back within striking distance of Monday's one-month lows, amid some renewed US Dollar selling bias. 

The Fed Chair Janet Yellen's comments on stubbornly low inflationary pressure signaled that the Fed might refrain from raising rates aggressively in 2018 and the same is being reinforced by sliding US Treasury bond yields

Moreover, the ongoing flattening of the US Treasury yield kept exerting some downward pressure on the greenback and has been one of the key factors weighing on the major.

Currently placed dangerously close to the 112.00 handle, today's key focus would be on the FOMC meeting minutes, which might provide some clues over the central bank's monetary policy outlook and provide some fresh directional impetus.

Ahead of the key event risk, the release of key US durable goods order would also be looked upon to grab some short-term trading opportunities.

Technical levels to watch

A clear break below the 112.00 handle, leading to a subsequent weakness below 111.90 level, is likely to accelerate the fall towards Oct. monthly lows support near the 111.65 region. 

On the upside, any recovery attempts might now confront immediate resistance near mid-112.00s, above which the pair could make a fresh attempt to conquer 50-day SMA barrier near the 112.80 region.
 

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