The U.S dollar continues to hold firm against the Japanese yen, despite a brief pullback towards the key 113.10 support level on Wednesday. Price-action currently trades around the 113.34 level on the USDJPY pair, as the U.S dollar recovers overnight losses. The two key risk events for the pair headed into the U.S trading session are CPI inflation figures from the U.S economy, and the FOMC policy decision. The U.S November CPI inflation release has the ability to generate high volatility in the USDJPY this afternoon, a lower number than expected would certainly pressure the U.S dollar index.
The USDJPY pair remains strongly bullish while trading above the 113.10 technical level, buyers will look to test towards the 113.75 and 114.06 levels. Extended daily resistance is found at 114.72 level.
Should the USDJPY pair move below the 113.09 technical level, intraday sellers will target towards 112.71 support level. Extended daily support is found at the 112.35 level.