USD/JPY finds some support near mid-110.00s

   •  On offers for the second straight session as DXY struggles near 3-year lows. 
   •  Surging US bond yields/risk-on mood helps ease the bearish pressure. 

The USD/JPY pair stalled its descent near mid-110.00s and has managed to rebound around 15-20 pips from session lows.

The greenback selling pressure remained unabated and kept exerting downward pressure on the pair for the second consecutive session on Friday. In fact, the key US Dollar Index struggled near three-year lows on heightened fears of a possible US government shutdown and was seen as the sole factor weighing on the major.

Meanwhile, the ongoing upsurge in the US Treasury bond yields, with 10-year yields jumping to its highest levels since September 2014, now seems to have extended some support.

Adding to this, a fresh wave of global risk aversion trade, as depicted by strong gains across European equity markets, was seen denting the Japanese Yen's safe-haven appeal and helped limit further depreciation, at least for the time being.

With the only scheduled release of Prelim UoM Consumer Sentiment, today's US economic docket lacks any major market moving data. Hence, the pair remains at the mercy of USD/US bond yield dynamics and broader market risk sentiment.

Technical levels to watch

A convincing break below 110.50-45 area is likely to accelerate the fall back towards 4-month lows support near the 110.20 region en-route the key 110.00 psychological mark. On the flip side, any recovery attempt is likely to confront immediate resistance near 110.85 level, which is closely followed by a strong hurdle near the 111.00-10 region.