USD/JPY recovers to 115.00 handle but lacking follow through momentum

The USD/JPY pair bounced off session low near 114.50 region and is now attempting a move back above 115.00 psychological mark.

A fresh bout of US Dollar buying interest seems to have emerged during European trading session as investors seemed reluctant to carry large bets ahead of the big event risk, Trump's inaugural speech, which helped the major to trade in positive territory for the third consecutive session, at least for the time being. 

Meanwhile, a mild positive opening in the European equity market also seems to be weighing on the Japanese Yen's safe-haven appeal and collaborating to the pair's recovery from session low. 

Further up-move, however, might be limited as investors would prefer to wait and see, if Trump delivers on his promised stimulus measures, before determining the pair's next leg of directional move.

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet notes, "A daily close below 113.75 would open the doors for a re-test of 112.57 levels. On the higher side, a convincing break above the previous day’s high of 116.04 would add credence to Wednesday’s bullish engulfing candle and thus open up upside towards 117.50 levels."