USD/JPY retreats from 2-1/2 month tops, back closer to 109 handle

   •  Upbeat US GDP print does little to boost the USD and fails to provide any additional boost.
   •  JPY underpinned by safe-haven buying amid mixed sentiment in US equity markets.

The USD/JPY pair faded US GDP-led bullish spike to the highest level since Feb. 8 and dropped to fresh session lows in the last hour.

Despite better-than-expected US GDP growth figures, the US Dollar struggled to attract any follow-through buying interest and failed to assist the pair to build on its move beyond an intraday high level of 109.54. 

Meanwhile, bears seemed to track the ongoing retracement in the US Treasury bond yields, with a mixed opening in the US equity markets providing an additional boost to the Japanese Yen's safe-haven appeal and further collaborating to the pair's modest retracement over the past hour or so.

It, however, remains to be seen if the downtick is seen as an opportunity to initiate fresh bullish positions or is an indication that the pair might have topped out in the near-term. Hence, it would be prudent to wait for a decisive break through the pair's near-term trading range before positioning for the next leg of directional move.

Technical levels to watch

The 109.10-109.00 region might continue to act as an immediate support, which if broken might prompt some long-unwinding trade and accelerate the slide towards 108.70 horizontal support. On the upside, sustained move beyond mid-109.00s now seems to pave the way for an extension of the pair's bullish trajectory towards reclaiming the key 110.00 psychological mark en-route the very important 200-day SMA barrier near the 110.25 region.