USD/JPY sits at fresh two-week tops, around mid-110.00s

The greenback held stronger through Asian session on Thursday, pushing the USD/JPY pair to fresh 2-week highs in the 110.50-60 region. 

The pair continued gaining traction for the fourth consecutive session and built on its recovery move from over 4-month lows touched in the aftermath of N. Korean headlines on Tuesday. 

A strong greenback recovery, with the key US Dollar Index extending its sharp rebound from over 2-1/2 year lows, further supported by Wednesday's upbeat ADP report and revised US GDP growth figures, has been one of the key factors driving the pair higher. 

   •  US: GDP looking solid - ANZ

Adding to this, easing geopolitical tensions and improving investors' risk appetite, reinforced by a follow through uptick in the US Treasury bond yields, did little to boost the Japanese Yen's safe-haven appeal and stall the pair's upward trajectory. 

On Thursday, the Japanese Yen was also being weighed down by disappointing release of Prelim Industrial Production data, showing a larger-than-expected contraction of 0.8% in July. 

Moving ahead, today's US economic docket, featuring the release of personal income/spending data, the core PCE price Index, Chicago PMI and pending home sales, would now be looked upon for some fresh trading impetus. 

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "The 4 hours chart shows that the price is struggling around a bearish 200 SMA around the current level, while the lack of follow-through during the American session resulted in technical indicators losing upward strength, although holding well above their mid-lines, suggesting a break above the mentioned daily high should lead to further recoveries. August 16th high at 110.94 is the next big resistance, with an extension beyond this last opening doors for a steeper advance."