USD/JPY trims most of its weekly gains, back to 113.60

• Dollar lost momentum, despite solid local data.
• Wall Street hit by a batch of poor earnings reports, adding to the bearish case.

The USD/JPY pair retreated from a three-month high of 114.23 after Wall Street's opening saw equities plummeting and yields retreating from multi-month highs, amid a soft batch of earnings reports. US Treasury yields, which reached multi-month highs ahead of the opening, remain above Tuesday's closing levels, but of their daily highs, with the 10-year note benchmark currently at 2.44%, and the 30-year note interest at 2.95%.

The pair currently trades around 113.60, down for the day and pretty much flat for the week, having bottomed so far in the day at 113.47. The ECB monetary policy meeting scheduled for this Thursday will surely make some noise on the pair, although a bigger market-motor for the pair will be US advanced Q3 GDP to be released on Friday.

Levels to watch

Below the mentioned daily low, the next support comes at 113.23, this week low, followed by the 113.00 figure. Resistances, on the other hand, can be located at the 114.00 figure, followed by today's high of 114.23. Beyond this last, the 114.40 is critical, as the pair was unable to surpass it in May and July.