USD/JPY mildly positive around 117.50 level

Having posted a high at 117.74 level, the USD/JPY pair trimmed some of its daily gains and retreated around 20-pips from session peak.

Currently trading around 117.55 region, the pair got an initial boost from lower-than-expected Japanese industrial production data, albeit bettered previous month's flat reading. Moreover, upbeat Japanese retail sales data, showing 1.7% y/y growth during November as compared to 0.9% expected and 0.2% contraction recorded in the previous month, provided a much needed respite for the Japanese Yen. Adding to this, a mild greenback pull-back was further seen collaborating to the pair's retracement from higher level. 

Meanwhile, the downside was limited as US Dollar's stronger up-trend remains very much intact on growing expectations of stronger US economic growth led by aggressive fiscal measures by Trump administration. 

Later during NY trading session, pending home sales data from the US might provide fresh impetus and would be looked upon to grab some short-term trading opportunities. 

Technical levels to watch

A subsequent retracement below 117.50 immediate support is likely to drag the pair back towards 117.15-10 support area below which the corrective slide could get extended towards 116.55-50 support area. On the upside, momentum above session peak resistance near 117.75 region is likely to get extended towards 118.00 handle, which if cleared seems to assist the pair back towards 118.20-25 resistance zone.