USD/JPY aiming to retest Wednesday's multi-month high

The USD/JPY pair was seen building on to overnight strong gains and is now inching closer to yesterday's eight-month highs.

Currently trading around 112.80 region, the pair on Thursday gained traction from disappointing Japanese manufacturing PMI print. The preliminary release of Nikkei Manufacturing PMI for November remained in expansion territory and came-in at 51.1, but fell short of consensus estimates anticipating a reading of 51.7. The reading was also lower-than 51.4 recorded in October. 

Meanwhile, the US Dollar extended Wednesday's upbeat US durable goods orders-led up-move, which was further supported by FOMC meeting minutes that reinforced market expectations for a December Fed rate-hike action. 

With a scheduled holiday in the US, on the back of Thanksgiving Day, traders are likely to remain on the sideline amid thin liquidity conditions. Hence, the broader market risk-sentiment surrounding equity market will derive the safe-haven demand and might provide some impetus for the major.

Technical levels to watch

From current levels, 113.00 round figure mark is likely to act as immediate resistance above which the pair is likely to extended the up-move further towards 113.70-80 (late March highs). On the flip side, weakness below 112.40 region (session low) might trigger a corrective slide, even below 112.00 round figure mark, towards testing 5-day SMA support near 111.65-60 region.