USD/JPY retreats from highs, moving closer to 116.00 handle

The USD/JPY pair trimmed some of its gains and retreated over 30-pips from session peak level of 116.46.

Currently trading around 116.10-15 region, pre-Trump nervousness seems to be weighing on investor sentiment and driving flows towards the traditional safe-haven currency, Yen, and collaborating to some selling pressure around the major. 

However, heading into the scheduled event risk, market participants might refrain from carrying big bearish US Dollar bets and hence, any sharp retracement from current levels seems unlikely. 

Moreover, upbeat sentiment surrounding equity market, which tends to dent the Japanese Yen's safe-haven appeal, might also lend some support to the pair and contribute towards limiting downslide, at least for the time being. 

Technical levels to watch

Immediate upside resistances is pegged near 116.50-55 area above which the pair seems all set to aim towards reclaiming 117.00 handle and continue gaining traction further towards 117.50-55 horizontal resistance. 

On the flip side, 116.00 handle now seems to protect immediate downside, which if broken could accelerate the slide towards 115.75 intermediate support, en-route 115.30-25 important support.