USD/JPY sits at fresh 3-month tops, comfortably above 114.00 handle

   •  Yen weighed down by slightly weaker Japanese national CPI. 
   •  Persistent USD strength supports a bullish outlook.
   •  Today’s key focus would be on third-quarter US GDP numbers.

The USD/JPY pair continued gaining some positive traction on Friday and is now comfortably placed above the 114.00 handle, at three-month tops. 

A slight miss from today's Japanese national core CPI print for September and the prevalent risk-on environment was seen weighing on the Japanese Yen. Adding to this, persistent US Dollar buying interest helped the pair to build on overnight strong rebound, back closer to 114.25 immediate resistance area. 

Meanwhile, a number of factors, ranging from progress over the US President Donald Trump's tax cut plans and hawkish Fed Chair speculations, remained supportive of the greenback's strong up-move. Hence, a follow through bullish momentum, ahead of today's advance US Q3 GDP, now seems a distinct possibility.

Technical levels to watch

A follow-through buying interest has the potential to continue lifting the pair towards July monthly tops resistance near mid-114.00s, above which the momentum could get extended towards the key 115.00 psychological mark.

On the flip side, the 114.00-113.90 area now seems to protect the immediate downside, which if broken might trigger a corrective slide back towards mid-113.00s before the pair eventually drops to sub-113.00 level (112.85-80 horizontal support).