USD/JPY challenging 50-DMA strong barrier near 114.15 level

The greenback continued to gain traction during early NA session, helping the USD/JPY pair to extend its recovery move further beyond the 114.00 handle. 

The US trade balance data failed to impress bears by printing in-line with estimates deficit of $48.5 billion for January, up from $44.3 billion recorded in the previous month, and trigger a modest short-covering bounce back closer to the 50-day SMA important hurdle near 114.15 region. 

Meanwhile, the latest leg of up-move in the US treasury bond yields also supported the mildly bullish sentiment surrounding the greenback, lifting the key US Dollar Index to daily tops near 101.85 region, and further collaborated to the pair's up-move in the past hour or so.

Looking at the broader perspective, the pair has repeatedly failed to conquer 50-day SMA and hence, it remains to be seen it the pair is able to build on to the ongoing up-move or once again runs into some fresh offers near the said important hurdle.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "In the 4 hours chart the price holds above its 100 and 200 SMAs that anyway remain directionless, while no clues can be take from technical indicators hovering within neutral levels. The pair seems set to remain confined within 113.50/114.50, for the day, with direction still strictly linked to yields' moves."