USD/JPY trims recovery gains, but holds above 111.00 level
|The USD/JPY pair trimmed some of its early recovery gains, albeit has managed to hold in positive territory above the 111.00 handle.
A slight improvement in investors' risk appetite on Thursday, which tends to driver flows away from traditional safe-haven assets - like the Japanese Yen, assisted the major to extend overnight recovery move from four-month lows near 110.75 region.
Moreover, a minor recovery in the US treasury bond yields further helped the greenback to paused its recent descent. In fact, the key US Dollar Index has managed to bounce off multi-week lows but has been generally sidelined as investors remain cautious ahead of the crucial vote on the US President Donald Trump's healthcare bill.
Against the backdrop of growing uncertainty over Trump's ability to deliver on the promised pro-growth economic policies, today's vote in the House of Representatives could prove to be a key determinant for the greenback's next leg of directional move.
US: Less tangible Trump stimulus than many have assumed - Westpac
On the economic data front, the release of weekly jobless claims and new home sales data from the US is likely to be overshadowed by Fedspeaks - the Fed Chair Janet Yellen and Minneapolis Fed President Neel Kashkari.
Technical levels to watch
Immediate support is pegged near 111.10 level, below which the pair is likely to head back towards multi-month lows support near 110.75 region en-route its next support near 110.35 level.
On the upside, momentum above mid-111.00s is likely to confront resistance near 111.70-75 area, above which the pair seems all set to reclaim the 112.00 handle and head towards testing 112.20-25 resistance area.
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