USD/JPY fails to clears 50-DMA hurdle, retreats ahead of Fedspeaks

The USD/JPY pair struggled to extend its up-move further beyond 50-day SMA hurdle and eased on Friday from two-week tops near 114.60 region reached on Thursday.

Currently trading around 114.15 region, the pair snapped four consecutive days of winning streak amid a mildly cautious trading sentiment, which seems to benefit the Japanese Yen's safe-haven appeal. In addition, a modest retracement in the US treasury bond yields is weighing on the US Dollar and collaborating to the pair's corrective slide on the last trading day of the week. 

On the economic data front, the release of mixed Japanese inflation figures got negated by disappointing release of household spending data and failed to provide any impetus, with the greenback dynamics continued being an exclusive driver of the pair's near-term movement. 

Later during NA session, another round of speeches from various FOMC members, including the Fed Chair Janet Yellen, would now be key determinant of the pair's next leg of directional move. Apart from Fedspeaks, the release of US ISM non-manufacturing PMI migt also provide some impetus for short-term traders.

Technical levels to watch

Bulls would be disheartened if the pair fails to defend 114.00 round figure mark, below which the corrective slide could get extended towards 113.75-70 support, en-route of 113.00 handle. On the flip side, sustained move above 114.50-55 region seems to lift the pair towards 114.95 hurdle (Feb. 15 high) before eventually heading to its next major resistance near 115.35-40 region.