The USD/JPY pair was seen struggling to build on to its recovery move and continued trading with bearish bias for the second straight session ahead of ECB decision.
Currently trading around 113.40 region, the pair weakened during Asian session and dropped closer to 113.00 region in absence of fresh US Dollar buying interest ahead of key central bank meetings. The pair, however, found some support at lower level after the final Japanese GDP for Q3 of 2016 was revised lower to show a growth of 0.3% as compared to 0.5% estimated earlier.
Moreover, a sharp rise in Chinese imports and exports data eased concerns of a slowdown in the world's second largest economy and boosted investor sentiment, eventually driving flows away from perceived safe-haven - Yen.
Market participants on Thursday will remain focused on the ECB monetary policy decision, later during European session. ECB decision would be a key driver of broader market sentiment, which would derive the Japanese Yen's safe-haven demand and eventually provide some impetus for the major ahead of the usual weekly jobless claims data from the US.
Technical levels to watch
Weakness below session low support near 113.15 level is likely to get extended, even below 113.00 mark, towards testing weekly lows support near 112.85 region. A follow through selling pressure below weekly lows support now seems to trigger a fresh leg of corrective slide towards 112.00 round figure mark with 112.45-40 area acting as intermediate support.
Meanwhile on the upside, momentum above session peak resistance near 113.85 level should lift the pair beyond 114.00 mark towards testing an important resistance near 114.45-50 region. A follow through buying interest has the potential to continue boosting the pair initially towards multi-month highs resistance near 114.80 region and eventually towards 115.00 psychological mark.
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