USD/JPY steady above 117.00 mark ahead of US data

Having posted a session high just below 117.50 level, the USD/JPY pair lost its upside momentum but has managed to hold its neck above 117.00 handle.

Currently trading around 117.30 region, the pair gained fresh traction on Tuesday after disappointing release of Japanese CPI figures for the month of December. Moreover, speculations of stronger US economic growth, and faster Fed rate-tightening cycle, continues to underpin the US currency and collaborating to the pair's bid tone on Tuesday. 

Meanwhile, a cautious trading action around European equity markets is extending some support to the traditional safe-haven assets, including the Japanese Yen, and has led to the pair's directionless price-action, within a narrow trading range below mid-117.00s. 

In holiday curtailed thin trading conditions, traders on Tuesday will focus on the Conference Board's consumer confidence index for December, due later during NA session, in order to grab some short-term trading opportunities.

Technical levels to watch

Immediate downside support remains near 117.10-117.00 zone below which the pair is likely to head towards testing 116.55 support area. Meanwhile on the upside, sustained momentum above 117.50 level is likely to boost the pair towards 117.90 resistance, which if cleared has the potential to lift the pair towards 118.20-25 resistance area.