USD/JPY bulls eyeing for a move beyond 114.00 handle

   •  Extends upbeat US data-led recovery move from over 1-week lows. 
   •  Risk-on mood supporting a move back closer to 114.00.
   •  ADP report, ISM PMI and FOMC decision hold the key. 

The USD/JPY pair built on overnight strong recovery move from over one-week lows and now seems to have entered a consolidation phase, just below the 114.00 handle. 

The pair held in positive territory for the second consecutive session and was being supported by a follow-through uptick in the US Treasury bond yields. Also collaborating to the pair's up-move was the prevalent risk-on environment, which tends to dent the Japanese Yen's safe-haven appeal.

Bulls, however, seemed struggling to lift the pair back above the 114.00 handle amid subdued US Dollar price action, despite Tuesday's upbeat US economic data that showed Chicago PMI jumped to its highest level since March 2011 and October consumer confidence rose to its highest level since December 2000.

Moving ahead, today's US macro data - ADP report on the private sector employment and ISM manufacturing PMI, might provide some trading impetus. The key focus, however, would remain on the FOMC statement, which should play a key role in determining the pair's next leg of directional move. 

Technical levels to watch

A follow-through buying interest beyond the 114.00 handle has the potential to continue lifting the pair towards 114.25-30 intermediate zone ahead of an important hurdle near the 114.45-50 region.

On the downside, 113.70 level now seems to have emerged as immediate support, which if broken might trigger a corrective slide back towards 113.45 level ahead of 113.15-10 support area.