USD/JPY retreats from highs, still holding gains above 110.00 mark

Having jumped to 111.00 neighborhood, the highest the level since May 31, the USD/JPY pair eased from higher level but has held on to its strong gains above 110.00 psychological mark. 

Currently trading around mid-110.00s, a minor greenback retracement triggered some profit taking move following the pair's relentless rally from the vicinity of 101.00 handle touched following the outcome of US presidential election. 

Bulls took a breather following yet another session of strong up-move on Thursday led by the Fed Chair Janet Yellen's testimony, which reinforced market expectations that the central bank would raise interest rates next month. 

Investors on Friday will remain focused on speeches from various FOMC members for fresh clues on the Federal Reserve’s monetary policy / interest rates outlook and might provide fresh impetus for the major. 

Technical levels to watch

From current levels, 110.20 level is likely to act as immediate support below which the pair could slide back below 110.00 psychological mark and extend its profit-taking slide towards 109.25-20 horizontal support. 

On the upside, 111.00 round figure mark now seems to have emerged as immediate resistance, which if cleared paves way for further near-term appreciating move for the pair towards May highs resistance near 111.45 level. 

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