USD/JPY on bids for third straight session but remains capped below 114.30-35 hurdle

The USD/JPY pair traded with a mild positive bias for the third consecutive day on Tuesday, albeit lacked any strong momentum and seesawed in a narrow trading band near two-month tops.

Currently trading around 114.20 region, the pair has been struggling to gain follow through traction and remained capped below May monthly highs resistance near 114.35-40 region amid subdued action around the US Treasury bond yields.

   •  The treasury yield curve is steepest since May 16

Monday's disappointing Machinery Orders and Current Account data from Japan has been weighing on the domestic currency, while global risk-on trade further dented the Japanese Yen's safe-haven appeal and helped the pair to hold near the highest level since May 11.

However, with markets looking past Friday's upbeat headline NFP print, which justified market expectations for another Fed rate hike action by the end of this year, stalling bullish momentum in the US bond yields have failed to provide any fresh bullish impetus for the major. 

Investors seemed to be waiting for the Fed Chair Janet Yellen's testimony and this week's important US macro data - monthly retail sales and inflation figures before positioning for the next leg of directional move for the major.

Today's releases of JOLTS Job Openings and Final Wholesale Inventories from the US would be looked upon for some trading impetus ahead of Federal Reserve Governor Lael Brainard's scheduled speech about normalizing central banks' balance sheets.

   •  Key US JOLTS data coming up - Nomura

Technical levels to watch

Bulls would be eyeing for a decisive breakthrough 114.30-35 resistance, above which the pair seem all set to head towards reclaiming the key 115.00 psychological mark before darting towards its next resistance near 115.30-35 region.

On the flip side, the 114.00 handle now seems to protect the immediate downside, which if broken could prompt some profit taking slide back towards 113.30 support area with some intermediate support near 113.75 region.