USD/JPY spikes closer to 106.00 handle ahead of US GDP

   •  Strong USD demand helps gain traction on Wednesday.
   •  Traders shrug off risk-off mood / weaker US bond yields. 
   •  The final US GDP growth figure eyed for fresh impetus.

The USD/JPY pair continued gaining some positive traction and spiked to fresh multi-day tops in the last hour, closer to the 106.00 handle. 

Resurgent USD demand, with the key US Dollar Index now building on its up-move beyond the 89.00 handle, helped the pair to build on its recovery move from nearly 17-month lows touched at the start of this week.

The latest leg of a sharp uptick, over the past couple of hour, could also be attributed to a modest rebound across European equity markets, which was seen weighing on the Japanese Yen's safe-haven appeal.

Meanwhile, traders also seemed to have ignored a weaker tone around the US Treasury bond yields, with the ongoing USD recovery prompting some fresh short-covering move since the early European session on Wednesday.

With an upward revision of the US GDP growth figures nearly priced in the market, the USD price dynamics might continue to act as an exclusive driver of the pair's momentum ahead of Atlanta Fed President Raphael Bostic's scheduled speech. 

Technical levels to watch

A convincing break through the 106.00 handle is likely to accelerate the up-move towards 106.25-30 intermediate resistance en-route the 106.60-65 supply zone. On the flip side, 105.45 level might now protect the immediate downside, which if broken might turn the pair vulnerable to head back towards retesting the key 105.00 psychological mark.