USD/JPY stuck in a range near 1-week lows

   •  Digesting overnight steep losses led by dovish FOMC outlook.
   •  Reviving USD/surging US bond yields fails to provide any boost.
   •  Bearish pressure seems more likely to get extended. 

The USD/JPY pair held on its modest recovery gains near the 112.65-70 band but struggled to gain any follow through traction, despite upbeat US data.

Today's better-than-expected monthly retail sales and weekly jobless claims data from the US triggered a fresh wave of an upsurge in the US Treasury bond yields and helped revive US Dollar demand. 

The pair, however, remained confined within a broader trading range and held within striking distance of yesterday's post-FOMC swing low level of 112.45. 

Despite resurgent USD, supported by stronger macro data, the pair's inability to attract any buying interest now seems to indicate that the bearish pressure might still far from being over.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes, "the pair retains the short-term bearish stance, with technical indicators regaining their downward strength, near oversold readings, as the price hovers between horizontal moving averages. The 200 SMA is acting as a dynamic resistance around 112.90 while the 100 SMA offers support at 112.35."