USD/JPY recovery hindered near 117.20 resistance

The USD/JPY pair stalled its recovery move near yesterday's high level and has now retreated around 30-pips from session peak.

Currently trading around 116.90-85 band, broad based greenback retracement, with the overall US Dollar Index hovering near 2-week lows, seems to be the only factor hindering the pair's up-move. Otherwise, the prevalent risk-on sentiment, which tends to weigh on traditional safe-haven assets - like Yen, should have assisted the pair to built on to its recovery momentum from the vicinity of 116.00 handle (the lowest level since Dec. 14) touched during early Asian session. 

Moreover, investors seemed reluctant to carry / initiate fresh long positions ahead of extended weekend in Japan and the US. Nevertheless, the pair remains on track to post third consecutive month of strong gains and end the year closer to nearly 11-month highs touched during mid-December. 

Technical levels to watch

On the upside, 117.20-25 area remains immediate resistance, which if cleared has the potential to lift the pair towards 117.60 resistance area ahead of 118.00 round figure mark. On the downside, renewed weakness below 116.50 immediate support could get extended back towards session low support near 116.00 handle below which 115.45-40 support gets exposed.