USD/JPY fails to reclaim 113.00 handle

The USD/JPY pair caught fresh bids near 112..00 handle and jumped back to 113.00 neighborhood before retracing from session peak to currently trade around 112.60-65 region. 

On Tuesday, the pair reversed from upbeat US economic data (US GDP and Consumer Confidence)-led strong up-move beyond 113.00 handle amid broad based greenback retracement. On Wednesday, the pair regained traction on the back of month-end commercial demand from Japanese corporate players. Further upside, however, remained capped as investors preferred to remain on the sidelines and wait to see if OPEC members can reach a deal on output freeze / cut at their meeting in Vienna. 

In the meantime, today's US economic docket featuring the release of ADP report on private sector employment, Fed's preferred inflation gauge - Core PCE Price Index, Chicago PMI and Pending Home Sales would now be looked upon for short-term trading opportunities. Also in focus would be speech from FOMC member Jerome Powell, which might also provide some impetus during NY trading session. 

Technical levels to watch

Momentum above 113.00 handle might continue to confront resistance near 113.25-30 region above which the pair seems all set to retest multi-month highs resistance near 113.70-75 region before aiming to reclaim 114.00 handle. On the downside, 112.00 handle now seems to have emerged as immediate support, which if broken decisively should drag the pair immediately towards 111.75-70 horizontal support, en-route weekly lows support near 111.35 level.