USD/JPY attempting a move back above 115.00 handle

The USD/JPY pair built on previous session's minor gains and is now on the brink of breaking through the key 115.00 psychological mark.

The pair on Monday regained some traction near mid-114.00s and reversed Friday's disappointing US wage growth data-led corrective slide from 7-week tops. Spot maintained slight positive bias on Tuesday but lacked conviction as investors preferred to remain on the sidelines ahead of this week's influential central bank decisions.

The US Federal Reserve is scheduled to announce its monetary policy decision during NY session on Wednesday and would be followed by the Bank of Japan during Asian session on Thursday. 

Meanwhile, a mildly positive tone around the US treasury bond yields seems to be lending some support to the greenback. Meanwhile, cautious sentiment around equity markets is boosting the Japanese Yen's safe-haven appeal and has led to the range-bound, subdued price action around the major.

In absence of any major US economic releases, broader market risk sentiment and the US bond yield price-dynamics would be key determinants of the pair's movement on Tuesday.

Technical levels to watch

Momentum above the 115.00 handle could get extended towards multi-week highs resistance near mid-115.00s, above which the pair seems all set to surpass 115.80 resistance area and head towards reclaiming 116.00 round figure mark.

On the downside, 114.65 level now becomes immediate support to defend, which if broken is likely to accelerate the slide towards 114.30 support ahead of 50-day SMA support near the 114.00 handle.