USD/JPY bumping back over 113.00, but weakness remains

• The Greenback sees limited gains despite climbing US Treasury yields.
• A case to the downside is building in the medium-term charts.

The USD/JPY is trading just north of the 113.00 major technical level just ahead of the European market session, and the US Dollar continues to trade towards the downside of recent consolidation as the market's favourite safe haven remains steady.

Broader markets remain on the bullish side as the US Dollar takes a step lower against the broader G10 FX space, but the Japanese Yen is likewise struggling to get a leg up as markets lean a little firmer into the risk-on camp, despite still-rising US Treasury yields and rising global trade tensions.

Machinery Orders in Japan surged in August, with the annualized figure coming in at 12.6%, far above the 1.6% forecast but still remaining subdued just beneath the rpevious reading of 13.9%, while the upcoming US Session sees American PPI figures at 12:30 GMT, where the annualized September PPI is expected to tick upwards from 2.3% to 2.4%.

USD/JPY levels to watch

According to FXstreet's own Valeria Bednarik, the Dollar-Yen pairing remains increasingly bearish as buyers struggle to develop momentum to the upside: "the bullish case has been erased further as, despite the strong momentum in yields, the pair remained well below the 114.00 threshold. The pair has spent the day hovering around a mild bullish 100 SMA in its 4 hours chart, losing ground below it in the American afternoon and as technical indicators resume their declines well into negative territory following a correction of oversold conditions, in line with further declines, particularly on a break below Monday's low at 112.81, with scope then to  extend its decline down to 112.00/20."

Support levels: 112.80 112.50 112.20  

Resistance levels: 113.40 113.75 114.10