USD/JPY weaker below 117.50 level

The USD/JPY pair traded with mild bearish bias on Friday and has now dropped to session low, albeit has held weekly trading range amid thin liquidity conditions. 

Currently trading around 117.35 region, the US Dollar extended its profit-taking slide after Thursday's mixed US economic data failed to impress bulls. On Thursday, the pair did attempt to move higher but reversed tepid move after disappointing US spending data overshadowed an upward revision of US economic growth report.

Moreover, weaker investor sentiment around Asian equity markets is also seen driving some safe-haven flows towards the Japanese Yen and contributing to the pair's offered tone on Friday.

The movement, however, remained subdued on the last trading day of pre-Christmas week amid lack of liquidity on the back of a bank holiday in Japan in observance of the Emperor's Birthday.

Later during NA session, new home sales data and revised UoM consumer sentiment index from the US might provide some impetus for short-term traders. 

Technical levels to watch

Immediate downside support is pegged at 117.10 level (Dec. 21 low) below which the pair is likely to break through 117.00 handle and head towards testing 116.55 support area. On the upside, momentum above 117.50 level now is likely to boost the pair towards 117.90 resistance, which if cleared has the potential to lift the pair towards 118.20-25 resistance area.