USD/JPY recovers early lost ground, lacks follow-through ahead of US ISM PMI

   •  Risk-on mood dents JPY’s safe-haven status and helped bounce off lows.
   •  The ongoing USD corrective slide seemed to cap any meaningful up-move.

The USD/JPY pair has managed to recover early lost ground, albeit struggled to build on the momentum further beyond the 113.00 handle.

The pair stalled overnight retracement slide from over three-week tops and was supported by the prevailing risk-on mood, which tends to weigh on the Japanese Yen's safe-haven status. The uptick, however, seemed lacking any strong conviction amid a heavily offered tone surrounding the US Dollar.

The greenback failed to preserve previous session's strong up-move led by upbeat ADP report and corrected sharply from 17-month tops, primarily on the back of a strong rally in the British Pound, which was eventually seen keeping a lid on any meaningful up-move for the major.

Hence, it would be prudent to wait for a follow-through buying interest before traders once again start positioning for an additional near-term up-move. Today's US economic docket, highlighting the release of ISM manufacturing PMI will now be looked upon for some fresh impetus during the early North-American session.

Technical levels to watch

On a sustained move beyond the 113.00-113.10 immediate hurdle, the pair is likely to surpass the 113.35-40 supply zone and aim towards reclaiming the 114.00 handle. On the flip side, the 112.75-70 region now becomes an immediate support to defend, which if broken is likely to accelerate the fall towards 112.25 congestion zone en-route the 112.00 handle.