The USD/JPY pair traded with a mild negative bias through the early European session and was last seen hovering near the lower end of its daily range, around the 110.70-65 region. The pair struggled to capitalize on Friday's goodish rebound, instead met with some fresh supply on the first day of a new week and turned lower for the third consecutive session. The US dollar remained on the defensive amid easing worries about runaway inflation in the US and a modest downtick in the US Treasury bond yields. Apart from this, the prevalent cautious mood around the equity markets benefitted the safe-haven Japanese yen and exerted some pressure on the USD/JPY pair.
Despite the combination of negative factors, the USD/JPY pair, so far, has managed to hold its neck comfortably above Friday's swing lows, around the 110.50-45 region. This should now act as a key pivotal point for intraday traders amid absent relevant market moving economic releases from the US. That said, the downside is more likely to remain limited as investors might refrain from placing any aggressive bets ahead of Friday's release of the closely watched US monthly jobs report (NFP).