USD/JPY flirting with daily lows, around 109.25

   •  Retracing US bond yields keep exerting downward pressure on the USD.
   •  Reviving safe-haven demand provides an additional boost to the JPY. 
   •  At current levels, remains poised for the highest weekly close since early Feb.

The USD/JPY pair held on to its weaker tone through the early NA session and is currently placed at the lower end of its daily trading range, around the 109.30-25 region.

The US Dollar extended its profit-taking slide from yearly tops set earlier this week and was further weighed down by a follow-through retracement in the US Treasury bond yields.

This coupled with reviving safe-haven demand, amid the prevalent cautious sentiment around equity markets, underpinned the Japanese Yen's safe-haven demand and further collaborated to the pair's mildly softer tone for the second consecutive session. 

Despite the recent rejection slide from the key 110.00 psychological mark, the pair has still managed to hold its neck comfortably above the 109.00 handle, with modest weekly gains, and still seems headed for the highest weekly close since early Feb. 

Meanwhile, traders now look forward to the release of Prelim UoM Consumer Sentiment, the only highlight from today's US economic docket, for some impetus on the last trading day of the week. 

Technical levels to watch

Any subsequent retracement is likely to find support near the 109.10-109.00 region, below which the slide could further get extended back towards the 108.75-70 horizontal zone. On the upside, mid-109.00s now seems to have emerged as an immediate hurdle, which if cleared could assist the pair to make a fresh attempt towards conquering the 110.00 handle.