USD/JPY but keeps the red near 113.65 region ahead of US data

   •  Hold weaker for the second consecutive session. 
   •  Sliding US bond yields capping meaningful up-move. 
   •  ECB-led volatility could provide some trading opportunities. 

The USD/JPY pair maintained its offered tone for the second consecutive session, albeit has managed to trim some of its early losses to 113.34 level. 

The pair's modest recovery attempt during early European session got sold into near the 113.80 area and was being capped by persistent weaker tone around the US Treasury bond yields. 

Even a goodish pickup in the greenback demand, with the key US Dollar Index recovering early lost ground and now holding with minor gains, did little to help the pair to regain traction and aim towards conquering the 114.00 handle. 

Meanwhile, traders seem to have largely ignored the prevalent positive trading sentiment around European equity markets, which tends to dent the Japanese Yen's safe-haven appeal, with the US bond yield dynamics acting as an exclusive driver of the pair's momentum on Thursday.

Today's US economic docket, featuring the release of initial jobless claims, goods trade balance, prelim wholesale inventories and pending home sales, would be looked upon for some impetus but would be overshadowed by ECB-led volatility in the FX market.

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Technical levels to watch

Any meaningful up-move is likely to confront resistance near the 113.90-114.00 region, above which the momentum could get extended towards 114.25 area (yesterday's high) ahead of July monthly highs resistance near mid-114.00s.

On the downside, 113.30-25 zone remains an immediate support to defend, which if broken is likely to accelerate the corrective slide even below the 113.00 handle towards its next support near the 112.85-80 region.