USD/JPY met with some fresh supply and eroded a part of the overnight strong gains. Reviving safe-haven demand, a modest USD pullback contributed to the weaker tone. Some follow-through uptick in the US bond yields might help limit losses, at least for now.

The USD/JPY pair dropped to fresh session lows in the last hour, with bears now looking to extend the fall further below the 107.00 round-figure mark.

The pair failed to capitalize on the previous day's strong intraday positive move of over 200 pips and met with some fresh supply during the Asian session on Wednesday amid reviving demand for traditional safe-haven assets.