USD/JPY turns neutral around 100-DMA, US data and Fedspeaks awaited

The USD/JPY pair swung from one-month high level of 112.08 to session low near 111.46 area and now seems to have stabilized in neutral territory around 100-day SMA, around 111.80-85 band.

A fresh wave of US Dollar selling pressure, led by an upsurge in the EUR/USD major following Draghi's upbeat comments, weighed on the major through early European session. Adding to this, weaker sentiment around European equity markets provided an additional boost to the Japanese Yen's safe-haven appeal and further collaborated to the pair's sharp retracement from the highest level since May 24, touched during early Asian session on Tuesday.

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However, a strong recovery in the US Treasury bond yields, with the benchmark 10-yr yields gaining around 1% helped the pair to recover early lost ground and recovery back to the very important 100-day SMA.

Today's release of CB Consumer Confidence Index for June would now be looked upon for some short-term trading opportunities during early NA session ahead of speeches by the Philadelphia Fed President Patrick Harker and the Fed Chair Janet Yellen, later during the day.

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Technical levels to watch

On a sustained break through the 112.00 handle, leading to a subsequent move above 112.10 level, is likely to lift the pair towards 112.45 horizontal resistance en-route its next major hurdle near 112.80-90 region.

Meanwhile on the downside, a follow through weakness below mid-111.00s now seems to drag the pair back towards 111.15-10 support before the pair eventually breaks below the 111.00 handle and head towards testing its next major support near 110.40-30 area.