USD/JPY consolidates above 113.00 mark, BOJ presser awaited

   •  Steadies after hitting over 1-week low.
   •  BoJ turns out to be a non-event.
   •  Fed Chair speculations could limit immediate upside. 

The USD/JPY pair seems to have entered a bearish consolidation phase and remained confined in 25-30 pips narrow trading range, closer to over one-week lows. 

Currently placed marginally above the 113.00 handle, the pair initially ticked higher following an upward revision of the BoJ's GDP forecasts. The pair touched an intraday high level of 113.28 but failed to extend the momentum after the central bank cut its inflation forecast for the current fiscal year. 

   •  BOJ Quarterly Report: Inflation expectations remain on weak note

Meanwhile, the latest developments in the investigations over Russian interference in the US election was seen lending some support to the Japanese Yen's safe-haven appeal and has been one of the key factors collaborating to the pair's offered tone for the third consecutive session. 

Adding to this, speculations that the US President Donald Trump was likely to pick Jerome Powell (less hawkish) as the next Fed Chair was also seen weighing on the US Dollar and might now limit any immediate sharp up-move for the major. 

Investors now look forward to the post-meeting BoJ press conference, where comments by Governor Haruhiko Kuroda might infuse some volatility across JPY crosses. 

On the economic data front, the release of Employment Cost Index, Chicago PMI and Conference Board's Consumer Confidence Index are due for release later during the NA session. The key focus, however, would remain on Wednesday's FOMC decision and the keenly watched NFP report on Friday.

Technical levels to watch

Weakness below the 113.00 handle is likely to find support near the 112.85-80 region, below which the pair is likely to extend the corrective slide towards 112.35-30 intermediate support ahead of the 112.00 handle. 

On the flip side, 113.45-50 area now seems to have emerged as immediate resistance, above which the pair is likely to make a fresh attempt towards reclaiming the 114.00 handle en-route July monthly highs resistance near mid-114.00s.