USD/JPY fails to register any meaningful recovery

After retesting multi-week lows near 100.10 region in the previous session, the USD/JPY pair caught fresh bids but was confined within Tuesday's trading range.

Currently trading around 100.60 region, renewed greenback buying interest, led by Tuesday's release of strong US consumer confidence data and hawkish comments from Fed Vice Chairman Stanley Fischer, is extending some support to the major. However, the prevalent cautious investor sentiment, amid worries over European banking sector, seems to hinder further buying interest and has capped additional recovery for the pair.

Later during NY trading session, the release of US durable goods order followed by the Fed Chair Janet Yellen's testimony might provide fresh impetus for short-term traders. In the meantime, the pair would continue to take clues from sentiment around riskier assets - like equities.

Technical levels to watch

Momentum above session high resistance near 100.70 would confront strong hurdle near 101.00 handle, which if conquered should boost the pair further towards 101.50 strong resistance zone. On the downside, weakness below 100.30 level might continue to find support near 100.00 psychological mark below which the pair is likely to head back towards August swing lows support near 99.60-55 region.