USD/JPY trades with modest losses, below mid-111.00s

   •  JPY benefits from reviving safe-haven demand and keeps exerting some downward pressure.
   •  The ongoing uptick in the US bond yields does little to revive the USD demand and lend support.
   •  The focus now shifts this week’s important release of the FOMC meeting minutes and US CPI.

The USD/JPY pair quickly retreated around 20-25 pips from Asian session swing high and is currently placed at the lower end of its daily trading range, around the 111.35 region.

The pair extended its retracement slide from three-week tops set last Friday, with a combination of negative forces exerting some downward pressure and contributing to the offered tone for the second consecutive session on Tuesday. 

The US Dollar remained depressed on the back of Friday's mixed US jobs data that showed wage growth had slowed in March and a strong rally in commodity-linked currencies, which drew support from the ongoing bullish run in oil prices.

WTI crude oil remained supported and surged to five-month highs, beyond $64.00/barrel mark on expectations that global supplies would tighten due to civil war worries in Libya, OPEC-led cuts and US sanctions against Iran and Venezuela. 

Meanwhile, the latest leg of an uptick in the US Treasury bond yields did little to provide any immediate respite to the USD bulls, through turned out to be the only factor helping limit deeper losses and hold the pair just above the previous session's swing low.

There isn't any major market-moving economic data due for release and hence, the USD price dynamics/broader market risk sentiment might continue to act as key determinants of the pair's momentum through Tuesday's trading session.

Moving ahead, the release of latest US consumer inflation figures and minutes of the latest FOMC monetary policy meeting, both due on Wednesday, will now be looked upon for some fresh impetus and determine the pair's near-term trajectory.

Technical levels to watch