USD/JPY Technical Analysis: Hits a temporary ceiling near 113.35 horizontal zone

   •  The pair once again failed to make it through an important supply zone near the 113.35 region and has now dropped to the lower end of its daily trading range. 

   •  The fact that the pair is holding above important intraday moving averages - 50, 100 & 200-hour SMA, support prospects for further near-term up-move. 

   •  Moreover, technical indicators on hourly/daily charts have managed to hold with a mild positive bias and add credence to the near-term constructive set-up.

   •  Hence, the current price-action could be seen as a consolidation phase, helping the pair to form a strong near-term base around the 113.00-113.10 horizontal zone.

   •  However, it would be prudent to wait for a sustained move beyond the 113.35 region before traders start positioning for any further near-term positive move.

   •  Meanwhile, a convincing break below the 113.00 handle might negate the positive outlook and turn the pair vulnerable to resume with its recent slide from YTD tops set on Oct. 4.

USD/JPY 1-hourly chart