USD/JPY recovers lost ground as investors await Yellen speech

After an initial pull back to 114.00 neighborhood, the USD/JPY pair regained traction and is now making a fresh attempt to build on to its momentum above 50-day SMA important hurdle.

Currently trading around 114.45-50 region, testing session peak, a fresh wave of up-move in the US treasury bond yields helped to pair to reverse early retracement. This coupled with a sharp recovery in the European equity market further dented the Japanese Yen's safe-haven appeal and collaborated to the pair's up-tick in the past hour or so.

The up-move, however, lacked momentum amid subdued US Dollar price action as investors await key speech from the Fed Chair Janet Yellen, and various other FOMC members, for confirmation of Fed rate-hike action at its upcoming policy meeting on March 14-15, which would eventually determine the pair's next leg of directional move. 

US: Yellen's speech in Chicago is awaited - BBH

The release of US non-manufacturing PMI might also help traders to grab some short-term trading opportunities during early NA session.

Technical levels to watch

A follow through buying interest above 114.50-55 region is likely to accelerate the up-move towards 114.95 hurdle (Feb. 15 high) before eventually aims towards testing its next major resistance near 115.35-40 region. On the flip side, weakness back below 114.20 level might now drag the pair below the 114.00 handle towards 113.75-70 support area.