USD/JPY retakes 114.00 mark, but lacks follow through traction

   •  Recovers around 40-pips from session lows.
   •  Struggling to extend the up-move beyond 114.00 handle.
   •  Focus remains on next Fed Chair announcement and tax-cut plans. 

The USD/JPY pair has managed to recover majority of its early lost ground and is now inching back closer to the top end of the daily trading range. 

Firming expectations for an eventual December Fed rate hike action helped limit early weakness, led by post-Fed profit taking. Adding to this, a modest rebound in the US Treasury bond yields further assisted the pair in recovering around 35-40 pips from session low level of 113.73. 

Meanwhile, the prevalent cautious environment across global financial markets and a mildly softer tone around the US Dollar did little to lend any additional support to extend the up-move further beyond the 114.00 handle. 

The price action indicated that traders seemed reluctant ahead of the next Fed chair announcement and the long-awaited US tax-cut legislation, which along with Friday's NFP data would drive the pair in the near-term. 

Technical levels to watch

Bulls would be eyeing for a follow-through momentum beyond 114.20 area, above which the pair is likely to dart towards retesting last week's over 3-month high level of 114.45.

On the flip side, the 113.70 level seems to have emerged as immediate strong support, which if broken is likely to extend the corrective slide towards the 113.00 handle with some intermediate support near 113.20 area.