USD/JPY: bulls remains in control, now eyeing to reclaim 113.00 handle

The Japanese Yen remained on the back foot, lifting the USD/JPY pair to fresh multi-week tops and within striking distance of the 113.00 handle.

Wednesday's FOMC monetary policy statement, which downplayed concerns over slowing economic growth during the first-quarter of 2017, lifted the US treasury bond yields and helped the pair to build on its break-out momentum above the 112.00 handle. 

   •  Market wrap: Fed leaves door open for a June hike, dollar takes off - Westpac

Bulls even shrugged off a mildly weaker sentiment surrounding global equity markets, which tends to benefit the Japanese Yen's safe-haven appeal, with the US yield dynamics acting as an exclusive driver of the pair's mildly positive bias for the sixth consecutive session.

The pair remains on track for third consecutive weekly gains as focus now shifts to the keenly watch US monthly jobs report, popularly known as NFP, for fresh impetus over the pair's next leg of directional move. 

Meanwhile, today's US economic docket that includes - weekly jobless claims, Prelim Nonfarm Productivity and Unit Labor Costs for the first quarter of 2017, along with Trade Balance and Factory Orders data, would be looked upon for short-term trading opportunities. 

Technical levels to watch

Bulls would be eyeing for a decisive break through the 113.00 handle, above which the pair is likely to accelerate the up-move towards 113.30-35 horizontal resistance en-route 113.85-90 strong hurdle. 

On the flip side, any retracement below mid-112.00s, leading to a subsequent drop below 112.30 support, might now find strong buying interest around the 112.00 handle and only a decisive break below the said handle would negate near-term bullish bias.