USD/JPY recovers early lost ground, back above 115.50 level

The USD/JPY pair has managed to bounce-off around 50-pips from session low near 115.20 level but continued trading with mild bearish bias for the day.

Currently hovering around 115.70-75 region, the pair initially built on Monday's reversal from mid-117.00s amid prevalent risk-off mood, as depicted my weaker sentiment surrounding equity markets, which tends to benefit the Japanese Yen's perceived safe-haven appeal. The risk aversion prompted traders to take some profits off their bullish positions. 

However, Friday's upbeat wage-growth data from the US, which supported prospects further Fed rate-hike action in 2017, continues to underpin the US Dollar demand and assisted the pair to reverse early losses. 

In absence of any major market moving economic releases, with the only scheduled release of JOLTS opening data from the US, the pair remains at the mercy of broader market risk sentiment and the US Dollar price dynamics. 

Technical levels to watch

From current levels, momentum back above 116.00 handle is likely to confront resistance near session peak level around 116.20 level above which the pair is likely to make a fresh move towards reclaiming 117.00 round figure mark. 

On the downside, weakness below session low support near 115.20 region, leading to a subsequent drop below 115.00 psychological mark, now seems to pave way for continuation of the pair's near-term corrective slide towards 114.70 intermediate support ahead of 114.45-40 strong support.