USD/JPY stuck in a range, just above 110.00 mark

The USD/JPY pair seesawed between tepid gains/minor losses and was seen consolidating its recent strong gains to near two-week tops.

Currently holding marginally above the key 110.00 psychological mark, the pair lacked any firm direction and remained stuck within a narrow trading band. 

Investors turned cautious due to the potential of fresh geopolitical tensions from N. Korea, especially after the UN Security Council imposed new sanctions, which was seen lending support to the Japanese Yen's safe-haven appeal. 

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This coupled with a softer tone around the US Dollar has also failed to assist the pair to build on its recent upsurge of around 300-pips from near 10-month lows touched on Friday.

Traders, however, refrained from initiating aggressive short positions in anticipation of a possible pickup in the price of finished goods and services sold by producers (PPI). 

Today's PPI print, along with consumer inflation (CPI) and monthly retail sales data, on Thursday and Friday respectively, would drive the pair ahead of next week's Fed monetary policy decision. 

Technical levels to watch

Bulls would be eyeing for a sustained move beyond 110.30 level, above which the pair is likely to aim towards testing 110.70-75 resistance ahead of the 111.00 handle. 

On the flip side, weakness below the 110.00 mark now seems to find immediate support near 109.70 level, which if broken could drag the pair back towards 109.20 horizontal support.