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   “¢   A goodish pickup in the USD demand helps stall the post-FOMC slide.
   “¢   Modest rebound in US bond yields/European equities remains supportive.
   “¢   Today’s US macroeconomic data will be eyed for fresh directional impetus.

The USD/JPY pair has managed to recover around 20-25 pips from intraday lows and might now be headed towards the top end of its daily trading range.

The pair stalled its post-FOMC decline from levels beyond the 113.00 handle, or fresh two-month lows, with a combination of supporting factors helping the pair to find some support ahead of mid-112.00s.  

Against the backdrop of a goodish pickup in the US Dollar demand, a modest rebound in the US Treasury bond yields was seen as one of the key factors lending some support.  

Adding to this, a steady recovery across European equity markets further dented the Japanese Yen’s safe-haven status and remained supportive of the pair’s steady climb to the 112.75-80 region.  

It, however, remains to be seen if the pair is able to build on the momentum and finally makes it through the 113.00 handle as investors now look forward to the US macroeconomic releases for fresh impetus.

Today’s US economic docket highlights the release of final Q2 GDP growth figures, which along with durable goods orders data will influence prospects for another Fed rate hike in December and eventually determine the pair’s next leg of directional move.

Technical levels to watch

The 113.00 handle might continue to act as an immediate hurdle, above which the pair seems all set to aim towards challenging YTD tops, around the 113.35-40 region. On the flip side, the 112.55 area now seems to have emerged as an immediate support, which if broken might turn the pair vulnerable to slide further towards testing the 112.00 handle.