USD/JPY surrenders early gains, tracking weaker US bond yields

   •  USD manages to preserve daily gains but fails to lend support.
   •  Traders tracking weakness in the US bond yields. 

The USD/JPY pair struggled to build on its early up-move, beyond the 107.00 handle and has now retreated to the lower end of its daily trading range. 

After yesterday's sharp retracement, the pair regained traction on Friday and was being supported by some renewed buying interest around the US Dollar, which has managed to preserve modest daily gains. 

The pair, however, seemed to track weakness in the US Treasury bond yields, while a subdued action around European equity markets also doing little to influence the Japanese Yen's safe-haven demand. 

There isn't any major market-moving economic data, due for releases from the US on Friday and hence, the US bond yield dynamics might continue to act as an exclusive driver of the pair's momentum on the last trading day of the week. 

Technical levels to watch

A follow-through weakness below mid-106.00s is likely to accelerate the fall towards 106.10 horizontal support before the pair eventually breaks below the 106.00 handle and resumes with its prior depreciating move.

On the upside, 107.10-15 area now seems to have emerged as an immediate resistance, which if cleared is likely to accelerate the up-move back towards 107.75 supply zone en-route the 108.00 handle.