USD/JPY failed to capitalize on the overnight upsurge of nearly 400 pips. A fresh leg down in the US bond yields kept the USD bulls on the defensive. Reviving safe-haven demand benefitted the JPY and added to the selling bias.

The USD/JPY pair refreshed session lows in the last hour, albeit managed to defend the 104.00 marks and quickly recovered around 30-40 pips thereafter.

The pair met with some fresh supply during the Asian session on Wednesday and eroded a part of the previous day's strong rally of nearly 400 pips, supported by resurgent US dollar demand and a strong recovery in the global risk sentiment.