USD/JPY range-bound around 112.00 mark, eyeing US GDP for fresh impetus

The USD/JPY pair was confined within a narrow trading band around 112.00 handle as investors now look forward to a slew of important market-moving US economic data for fresh impetus. 

Following its recent up-surge of nearly 1200-pips to 8-1/2 month highs, the pair's corrective pull-back in the previous two trading sessions could be categorized as consolidation phase amid near-term overbought conditions. The prevalent cautious sentiment around Asian equity markets is extending support to the Japanese Yen's safe-haven appeal.

Meanwhile, speculations of faster Fed rate-hike action in 2017 continue to underpin the greenback, resulting into range-bound price action around the major. Hence, this week's US macro data catches additional focus in order to determine the timing of next Fed rate-hike action, beyond December meeting. 

The first revision of US GDP growth figure for the third quarter of 2016 and Consumer Confidence index, slated for release later during NA session, should provide fresh impetus for the pair. Later during the week, US monthly jobs report (NFP) will grab all the attention and would be a key determinant for the pair's next leg of directional move. 

Technical levels to watch

From current levels, 112.50 area is likely to act as immediate resistance above which the pair seems all set to surpass 113.00 handle and dart towards 113.25 resistance area. On the downside, weakness below 111.35 (yesterday's low) is likely to drag the pair below 111.00 handle towards testing its next support near 110.80 region.