USD/JPY slide to fresh session lows, around mid-108.00s

   •  Overnight USD rebound turns out to be short-lived.
   •  Reviving safe-haven demand adds to the selling pressure.
   •  US consumer confidence data eyed for fresh impetus.

The USD/JPY pair extended its steady decline and is currently placed at session lows, around the 108.60-50 band amid renewed greenback selling bias.

The US Dollar failed to build on overnight modes rebound, with a sharp retracement in the US Treasury bond yields prompting some fresh at higher levels and exerting some downward pressure on the major.

Apart from a broadly weaker USD, the prevalent risk-off environment, as depicted by a sea of red across global equity markets, was seen underpinning the Japanese Yen's safe-haven and further collaborated to the pair's offered tone.

With the latest leg of downfall, the pair has now reversed previous session's modest recovery gains and remains within striking distance of over 4-month lows touched on Friday. 

Bulls now look forward to the Conference Board's Consumer Confidence Index, the only scheduled release from today's US economic docket, for some immediate respite. 

The key focus, however, would be on the US President Donald Trump's first official State of the Union address and the highly anticipated FOMC decision, which would help investors determine the pair's next leg of directional move. 

Technical levels to watch

Omkar Godbole, Analyst and Editor at FXStreet writes, “the USD/JPY pair could see multiple 'dead cat bounce' on its way lower to the bullish reversal point of 102.73.”

“Only a daily close above 110.84 (Nov. low) would abort the bearish view. Meanwhile, a break above the descending trendline (sloping lower from the Aug. 2015 high and Dec. 2015 high) would signal a long-term bearish-to-bullish trend change” he adds.