USD/JPY inching closer to 114.00 mark amid notable USD demand

   •  Supported by resurgent USD demand and fading safe-haven demand.
   •  Weaker US bond yields could limit additional up-move.

The USD/JPY pair has managed to recover early lost ground and is currently placed near session tops, around the 113.80 region.

A fresh wave of greenback buying interest, with the key US Dollar Index surging through the 94.00 handle, primarily led by post-ECB selling around the EUR/USD major, has been one of the key factors driving the pair higher through the early NA session. 

Adding to this, a strong opening in the US equity markets was seen weighing on the Japanese Yen's safe-haven appeal and further collaborated to the pair's modest uptick over the past hour or so.

Meanwhile, today's second-tier US economic data - initial weekly jobless, goods trade balance and prelim wholesale inventories, went past unnoticed, with some renewed USD demand and risk-on environment supporting the pair's move back closer to the 114.00 handle. 

It, however, remains to be seen if the pair is able to conquer the mentioned handle or meet with some fresh supply at higher levels amid persistent weaker tone around the US Treasury bond yields. 

Technical levels to watch

Sustained momentum beyond 114.00 area is likely to accelerate the up-move towards 114.25 level (yesterday's high) before the pair eventually darts towards July monthly tops resistance near mid-114.00s.

On the flip side, retracement back below 113.75 level now seems to find support near mid-113.00s, which if broken now seems to drag the pair towards the 113.00 handle en-route 112.85-80 horizontal support.