USD/JPY mildly higher for fourth straight session

The USD/JPY pair extended its near-term appreciating move for the fourth straight session, albeit at gradual pace, and has managed to hold its neck above 104.00 handle.

Currently trading around 104.55-60 band, the pair remains within striking distance of a multi-month highs touched on Tuesday as the greenback continues to be underpinned from growing expectations of an eventual Fed rate-hike action by the end of this year.

Market expectation over next Fed rate-hike decision has been the sole driver for the pair over the past few weeks. With CME group's FedWatch Tool now pointing to 72.0% possibility of such an action in December, the pair seems more likely to continue with its slow but steady upward trajectory in the near-term.

Today's US economic docket, featuring the release of monthly durable goods and pending home sales would be looked upon for some impetus during NA session, while major focus would remain on Friday's release of advance quarterly GDP print for Q3 2016. 

Technical levels to watch

From current levels, 104.85 region (multi-month highs) is likely to act as immediate resistance above which the pair seems all set to reclaim 105.00 handle and aim towards late July highs resistance near 105.50-60 region. On the flip side, weakness below 104.30 immediate support might get extended but is likely to be limited by a strong support near 104.00 handle.