USD/JPY stable near weekly tops, just above mid-112.00s

   •  Gains positive traction for the fourth straight session.
   •  Resilient US bond yields help offset US tax bill concerns.
   •  US ISM PMI and Fedspeaks eyed for fresh impetus.

After an initial dip to 112.30 area, the USD/JPY pair regained traction and turned higher for the fourth straight session. 

The pair built on this week's recent recovery move from over 2-month lows touched on Monday and posted 1-1/2 week high near the 112.70 region, despite weaker US Dollar. 

The highly-anticipated US tax overhaul bill hit a roadblock on Thursday after the Senate delayed voting and ruled that a fiscal trigger will not work under Senate rules. Renewed concerns over the fate of US tax reform plan kept the USD bulls on defensive. 

However, Thursday's data, showing that the Fed's preferred inflation gauge pushed higher, reinforced December rate hike move. The same was evident from resilient US Treasury bond yields, which to some extent helped offset the greenback weakness and has been one of the key factors supportive of the pair's up-move. 

Moreover, the prevalent risk-on mood was also seen weighing on the Japanese Yen's safe-haven appeal and further collaborated to a mildly positive sentiment surrounding the major.

Later during the NA session, the release of US ISM manufacturing PMI, along with Fedspeaks would now be looked upon for some fresh impetus. Nevertheless, the pair remains on track to snap three consecutive weeks of decline and the week on a positive note. 

Technical levels to watch

A follow-through buying interest has the potential to continue lifting the pair towards the 113.00 handle, above which the momentum could further get extended towards 113.40-45 horizontal resistance.

On the flip side, any meaningful retracement now seems to find support near the 112.00 handle, which if broken is likely to accelerate the fall back towards 200-day SMA support near the 111.70 region.