USD/JPY struggles near 2-week lows, around 107.00 mark

• USD/JPY witnessed some selling for the fourth straight session on Tuesday.
• The prevalent cautious mood underpinned the JPY’s safe-haven demand.
• A modest pickup in the USD demand extended some support to the pair.
• A sustained break below monthly lows needed to confirm bearish outlook.

The USD/JPY pair struggled near two-week lows on Tuesday, with bears still awaiting a sustained break below the 107.00 round-figure mark.

The pair remained depressed for the fourth consecutive session on Tuesday and was being weighed down by the prevailing cautious mood around the global equity markets, which underpinned the Japanese yen's safe-haven demand.

Despite the latest optimism over the easing of coronavirus-related lockdowns globally and a push to accelerate the gradual re-opening of the economies, a fresh leg down in oil prices weighed on investors' sentiment.

The anti-risk flow was further reinforced by a downtick in the US Treasury bond yields, which further contributed to the pair's weaker tone. However, a goodish pickup in the US dollar demand helped limit deeper losses.

Persistent worries over the economic fallout from the coronavirus pandemic continued benefitting the greenback's status as the global reserve currency. This, in turn, seemed to extend some support to the major, at least for now.

Hence, it will be prudent to wait for some follow-through selling, possibly below monthly lows support near the 106.95-90 region, before traders start positioning for any further near-term depreciating move for the pair.

Moving ahead, Tuesday's release of the Conference Board's US Consumer Confidence Index might influence the USD price dynamics and produce some meaningful trading opportunities later during the early North-American session.

The key focus will remain on Wednesday's release of the advanced US Q1 GDP report and the latest FOMC monetary policy update, which might play a key role in determining the pair's next leg of a directional move.

Technical levels to watch