The USD/JPY pair dropped to fresh session lows, around the 107.40 region during the early North American session, albeit quickly recovered few pips thereafter.
The pair continued with its struggle to make it through 50-day SMA hurdle and once again witnessed an intraday pullback from levels just ahead of the 108.00 round-figure mark amid some aggressive US dollar selling.
The easing of lockdown restriction across the world raised hopes that the global economy is moving towards recovery. This coupled with the latest optimism over a potential COVID-19 vaccine boosted investors' confidence.
This, in turn, dampened the greenback's status as the global reserve currency and prompted some intraday selling around the major. The USD remained depressed and failed to gain respite from Tuesday's US macro data.
In fact, the Conference Board's US Consumer Confidence Index came in at 86.6 for May and the previous month's reading was revised down to 85.7 from 86.9 reported earlier. The data, however, did little to impress the USD bulls.