USD/JPY consolidates in a range around 113.00 mark

The USD/JPY pair seems to have entered a bullish consolidation phase and was seen oscillating in a 15-20 pips narrow trading range around the 113.00 handle.

The pair continued with its struggle to gain any strong follow through traction further beyond the 113.00 handle and was being capped by a modest US Dollar retracement from 1-1/2 month tops. 

However, the prevalent risk-on environment, which tends to dent the Japanese Yen's safe-haven appeal continued lending support and helped the pair to hold in positive territory for the third consecutive session.

It, however, remains to be seen if the pair is able to build on the up-move or continues facing fresh supply near the 113.20-25 region, 2-1/2 month highs touched last week. 

   •  USD/JPY bullish, attention to 113.80 – UOB

In absence of any major market moving economic releases, the pair remains at the mercy of broader market risk sentiment and any fresh news/developments over the US President Donald Trump's proposed tax reform plan.

   •  US: New tax reform framework has still further to go – HSBC

Technical levels to watch

Bulls would be eyeing for a strong follow through traction beyond 113.20-25 area, above which the pair is likely to accelerate the up-move towards mid-113.00s before eventually darting towards its next key hurdle near the 114.00 handle.

On the flip side, 112.85-80 zone now seems to protect immediate downside, which if broken could drag the pair back towards 112.35 intermediate support en-route the very important 200-day SMA support near the 112.00 handle.