The USD/JPY pair refreshed daily tops, around the 108.45 region during the early European session, and recovered a part of the previous day's losses. Having shown some resilience below the 108.00 mark, the pair staged a modest recovery from seven-week lows and was supported by a combination of factors. The underlying bullish sentiment in the financial markets undermined demand for the safe-haven Japanese yen. Bulls further took cues from an uptick in the US Treasury bond yields, albeit the prevalent US dollar selling bias might cap gains for the USD/JPY pair.

In the absence of any major market-moving economic releases from the US, it will be prudent to wait for some strong follow-through buying before confirming that the USD/JPY pair has bottomed out. That said, the bias remains tilted in favor of bearish traders and supports prospects for an extension of the recent pullback from one-year tops. Hence, any subsequent positive move might still be seen as a selling opportunity and remain capped near the 109.00 mark. The mentioned handle represents a confluence support breakpoint, comprising 102.59-110.97 strong move up, which should now act as a key pivotal point.