USD/JPY drops farther below 114.00 handle, US macro data in focus

The USD/JPY pair traded with negative bias for the second consecutive session and moved farther from near two-month highs touched this week.

Currently trading around 113.70-75 region, a mildly cautious to negative sentiment surrounding Asian equity markets boosted the Japanese Yen's safe-haven appeal. The ongoing slide in the US treasury bond yields further supported the prevalent risk-aversion traded and has been a key factor weighing on the major.

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Moreover, the US Dollar has failed to build on Thursday's upbeat US macro data-led gains (PPI and initial weekly jobless claims), which eventually did little to extend any immediate support and stall the pair's downslide on the last trading day of the week. 

Investors now turn their focus to yet another important US economic docket, featuring the release of CPI and monthly retail sales later during the NA session, for some fresh impetus. In the meantime, broader market risk-sentiment and the US bond yield dynamics would continue to drive the pair through European session.

Technical levels to watch

Immediate support is pegged near 113.50-45 region (yesterday's low), below which the corrective slide could get extended even below the 113.00 handle towards its next support near 112.80-75 region.

On the flip side, any up-move now seems to confront immediate resistance near 113.95-114.00 area, which is followed by a strong hurdle near 114.25 level. A clear break through 114.25 resistance, the pair seems all set to head towards reclaiming the key 115.00 psychological mark, with some intermediate resistance near 114.70-75 zone.