USD/JPY confined in a range around 114.00 mark

Following yesterday's volatile session, the USD/JPY pair was confined within a narrow trading band in a directionless price-action on Tuesday. 

Currently trading marginally 114.00 handle, the pair failed to build on to its early recovery move from session low level of 113.50 to back above 114.00 handle as market digested a spurt in FX market volatility following a 'NO' vote to Italian Prime Minister Matteo Renzi’s constitutional reforms proposal in a referendum on Sunday. 

Meanwhile, the post US-election US Dollar rally, on growing expectations of aggressive fiscal stimulus by Trump administration in order to support the US economy, also seems to be losing momentum and has failed to provide fresh impetus for the major. Investors now look forward to next week's FOMC meeting and updated economic projections, which would throw light on the Fed's near-term monetary policy outlook and eventually determine the next leg of directional move for the major.

Meanwhile, today's US economic calendar, featuring - revised non-farm productivity, trade balance data and factory orders, would be looked upon for short-term trading opportunities during NA session.

Technical levels to watch

Immediate resistance on the upside is pegged at 114.45-50 region above which the pair seems all set to head towards testing last week's multi-month high resistance near 114.80 region ahead of 115.00 psychological mark. On the downside, weakness below session low support near 113.50 level now seems to drag the pair back below 113.00 handle, towards testing 112.85 support area (yesterday's low).