USD/JPY keeps the red below mid-111.00s, Fed decision awaited

The USD/JPY pair extended its steady decline through mid-European session and has now dropped to session low in the 111.25-30 region.

Having stalled its upward trajectory just ahead of the 112.00 handle, the pair came under some selling pressure on Wednesday amid pre-Fed cautious trade. 

The Japanese Yen was also seen benefiting from reviving safe-haven demand, especially after the US President Donald Trump issued a warning to totally destroy N. Korea if threatened. 

Meanwhile, the ongoing slide in the US Treasury bond yields further added to the US Dollar woes and did little to lend any immediate support to the major.

Traders now look forward to the release of US existing home sales data and the much awaited FOMC decision before positioning for the pair's next leg of directional move.

Technical levels to watch

Any subsequent weakness is likely to find support near the 111.00 handle, below which the pair is likely to accelerate the slide towards 110.75-70 horizontal support. On the upside, any up-move is likely to confront immediate resistance near the 111.60 region, above which the pair is likely to make a fresh attempt towards conquering the 112.00 handle.