USD/JPY bounces-off lows, still weaker below 117.00 handle

After being slammed to two-week lows, the USD/JPY pair has managed to recover around 50-pips from session low but maintained bearish bias below 117.00 mark.

Currently trading around 116.70 region, weaker for the second consecutive session, market now seems to have digested Wednesday's disappointing home sales data from the US, with the greenback, as measured by the broader US Dollar Index, regaining traction at lower levels and recover some of its early lost ground. 

Meanwhile, a mild bounce in the US Treasury bond yields is also supportive of the greenback's recovery and is collaborating to the pair's sharp recovery in the past hour or so. Adding to this, recovery in major European equity indices is denting the Japanese Yen's safe-haven appeal and also contributing to the pair's recovery momentum during early NA session.

Moving ahead, the initial weekly jobless claims and goods trade balance data would now be looked upon for further respite for the US Dollar bulls. 

Technical levels to watch

A follow through recovery move above 116.70-75 resistance is likely to accelerate the move towards 117.00 handle above which the pair is likely to resume its bullish momentum and head back towards 117.50 resistance area. On the downside, session low near 116.25-20 area seems to act as immediate support, which if broken now seems to drag the pair towards 116.00 handle before eventually breaking towards 115.50-45 support area.