USD/JPY off lows, but still in red around 114.00 handle despite of upbeat US macro data

As the NA session gets underway, the USD/JPY pair finally moved out of its consolidation phase and dropped below the 114.00 handle.

A fresh wave of global risk-aversion trade, as depicted by a sharp slide in the European equity markets, boosted the Japanese Yen's safe-haven appeal. Adding to this, a softer tone surrounding the US treasury bond yields further collaborated to the pair's slide to fresh session low near 113.80 region.

The pair, however, found some support after data released from the US showed initial weekly jobless claims unexpectedly dropped to 236K for the week ended May 5 from last week’s 238K and as compared to a rise to 245K expected. 

Adding to this, the latest PPI print showed the price of finished goods and services sold by producers jumped 0.5% m-o-m during April, taking the yearly rate to 2.5%. Meanwhile, core PPI (excluding food and energy) also showed a higher-than-expected rise of 0.4% during the recorded period and provided an additional boost to the US Dollar, with the pair bouncing few pips from lows to currently trade around the 114.00 handle.
 
Technical levels to watch

A follow through selling pressure below 113.65-60 zone (yesterday's low) is likely to extend the corrective slide further towards 113.25 horizontal support before the pair eventually breaks below the 113.00 handle towards testing its next support near 112.75 level.

On the upside, momentum above the 114.00 handle might continue to confront resistance near 114.30 level, above which the pair seems all set to aim towards reclaiming the key 115.00 psychological mark.