USD/JPY retakes 113.00 mark, back closer to near 2-1/2 month tops

After yesterday's modest retracement from near 2-1/2 month tops, the USD/JPY pair regained some fresh traction and has now moved back above the 113.00 handle. 

Persistent US Dollar buying interest, amid growing conviction for an additional Fed rate hike move this year and reviving hopes over Trump's tax reforms kept pushing the pair higher for the third consecutive session. 

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The Japanese Yen was further weighed down by the latest political landscape in Japan, where in the lower house was dissolved today and markets now expecting the snap election to be held on Oct 22. Hence, focus would be on the Japanese PM Shinzo Abe's address to reporters, scheduled at 5 PM (Japan local time), i.e., 0800 GMT.

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Meanwhile, the prevalent risk-on environment, as depicted by positive trading sentiment around Asian equity markets, was also seen denting the Japanese Yen's safe-haven appeal and further collaborated to the pair's up-move to session tops, in the 113.15-20 region. 

Later during the NA session, the final revision of the US GDP figures for the second quarter of 2017 and the usual weekly jobless claims would be key highlights from today's US economic docket.

Technical levels to watch

Momentum beyond 113.25 level could get extended towards 113.55 intermediate hurdle, above which the pair seems all set to aim towards reclaiming the 114.00 handle.

On the flip side, immediate support is pegged near 112.80-75 area, which if broken could drag the pair back towards mid-112.00s en-route the very important 200-day SMA support near the 112.00 handle.