USD/JPY hovers just below weekly tops, US data awaited

   •  Reviving USD demand helps regain traction.
   •  Traders ignore Subdued US bond yields/cautious mood.
   •  US data eyed for some short-term trading impetus. 

The USD/JPY pair finally broke out of its Asian session consolidation phase and is now inching back closer to over 1-week tops touched yesterday.

After yesterday's sharp retracement, the pair regained some fresh traction and was seen benefitting from a goodish pickup in the US Dollar demand, led by a sharp drop in the European common currency following a victory for separatists in the latest Catalan vote. 

Even a mildly softer opening across European equity markets, which tends to underpin the Japanese Yen's safe-haven appeal, coupled with a subdued action around the US Treasury bond yields failed to stall the pair's modest uptick through the early European session. 

Currently placed around 113.45 level, testing session tops, traders would now take cues from today's US economic docket, featuring the release of personal income/spending figures for November, along with the Fed's preferred inflation gauge - core PCE price index, Durable Goods Orders, New Home Sales and the Michigan consumer sentiment index. 

In the meantime, the USD price dynamics would continue to act as an exclusive driver of the pair's momentum in a rather lackluster, pre-holiday thin trading action.

Technical levels to watch

Immediate hurdle remains near the 113.65-75 region, above which the pair seems all set to surpass the 114.00 handle and aim towards testing 114.40-50 supply zone. On the downside, 113.25 level, followed by the 113.00 handle now becomes immediate support levels, which if broken could accelerate the fall towards 112.75 level en-route 112.35 horizontal support.