USD/JPY off lows, still weaker below 114.00 handle

The USD/JPY pair has managed to bounce off session low near mid-113.00s but remained in negative territory for the second consecutive session.

Against the backdrop of geopolitical tensions North Korea ballistic missiles test, a fresh wave of worries over the political uncertainty in the Euro-zone, following former French Prime Minister Alain Juppe's statement that he won’t enter the race for the Presidency, provided an additional boost to the Japanese Yen's safe-haven appeal and kept the major under some selling pressure through European trading session.

Meanwhile, renewed US Dollar buying interest, in wake of growing market consensus for a March Fed rate-hike action, has failed to benefit the pair, albeit did help the major to bounce off around 25-pips from three day lows. 

Later during NA session, the release of US factory orders might provide some impetus for short-term traders, while broader market risk-sentiment would remain a key determinant of the pair's movement on Monday. 

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet notes, "A daily close above the channel resistance would add credence to the argument that the spot has bottomed out at 111.60 (Feb low) and open doors for a revisit to 118.66 (Dec 15 high). The RSI is already above 50.00, pointing to a potential bullish break ahead."