USD/JPY breaks below 112.00 mark, back closer to over 1-week lows

   •  A fresh wave of global risk-aversion trade underpins JPY’s safe-haven status.
   •  Falling US bond yields fail to assist the USD to build on the overnight gains.

The USD/JPY pair came under some renewed selling pressure on Friday, with bears now looking to extend the negative momentum farther below the 112.00 handle.

After yesterday's good two-way price action, a fresh wave of risk-aversion trade underpinned the Japanese Yen's safe-haven status and prompted some aggressive selling around the major.

The Chinese Yuan started weakening on the last trading day of a turbulent week amid lingering concerns over US-China trade tensions. This coupled with anxiety over corporate profits triggered a fresh wave of selloff across global equity markets. 

The risk-off mood was evident from a sharp fall in the US Treasury bond yields, which failed to assist the US Dollar to build on the overnight upsurge to over two-month tops. Hence, a subdued US Dollar price action failed to lend any support, or stall the ongoing slide back closer to over one-week lows touched in the previous session.

It would now be interesting to see if the pair is able to find any buying interest or continue with its weakening trend as market participants now look forward to the release of advance US Q3 GDP growth figure for some fresh impetus. 

Technical levels to watch

A follow-through selling is likely to accelerate the slide further towards 100-day SMA support near the 111.60-55 region before the pair eventually drops towards the 111.10-111.00 horizontal zone. On the flip side, the 112.25 level now seems to act as an immediate hurdle and is followed by the 112.65-70 supply zone, above which the momentum could get extended towards reclaiming the 113.00 handle.