USD/JPY slides farther below 110.00 mark, hits fresh multi-week lows

The USD/JPY pair remained heavily offered and touched a fresh 8-week low level near the 109.70 region during early European trading session. 

The latest bout of geopolitical tensions emerging from the Korean Peninsula continued driving investors towards traditional safe-haven assets. The prevalent risk-off environment was evident from a sharply lower opening in the European bourses and was seen benefitting the Japanese Yen's safe-haven appeal.

Moreover, the US Dollar also struggled to build on overnight recovery move and failed to preserve early gains, which eventually failed to provide any immediate respite for the bulls. Meanwhile, investors now seemed to look past yesterday's upbeat job openings data from the US, with broader market risk sentiment acting as an exclusive driver of the pair's movement on Wednesday.

Today's US economic docket lacks any major market moving economic releases and hence, the focus would remain on any fresh news related to deteriorating relations between the US and N. Korea. 

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Technical levels to watch

Immediate support is pegged near mid-109.00s, below which the fall could get extended towards the 109.00 handle en-route 108.80 level (June 14 lows). On the upside, any recovery move might continue to confront some fresh supply near the key 110.00 psychological mark, which if cleared could lift the pair back towards 110.60-65 horizontal resistance ahead of the 111.00 handle.