USD/JPY holds weaker below 107.00 handle

   •  Remains capped by subdued USD price-action.
   •  Powell's first testimony eyed for fresh impetus. 

The USD/JPY pair struggled to build on overnight rebound from one-week lows and traded with a mild negative bias, below the 107.00 handle. 

The pair once again faced difficulty in breaking through the 107.10 supply zone, which has been acting as a key hurdle since Friday. A subdued US Dollar price-action has been one of the key factors capping any meaningful up-move for the major.

Adding to this, a cautious trading sentiment around Asian equity markets was seen underpinning the Japanese Yen's safe-haven appeal and was seen exerting some downward pressure on the major. 

The pair, however, has managed to hold comfortably above previous session's multi-day tops as investors await the Fed Chair Jerome Powell's first testimony before the Congress, which would be looked upon for clues over the central bank's monetary policy outlook and eventually provide some fresh directional impetus.

On the economic data front, the release of durable goods order and CB's Consumer Confidence index from the US might also help traders grab some short-term trading opportunities. 

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes: “The USD/JPY will likely see a convincing move above 108.00 (trendline resistance), confirming a bearish-to-bullish trend change and could test supply around 108.54 (38.2% Fib R of 113.39-105.55) and 109.00.”

“A downside break of the symmetrical triangle seen on the 4-hour chart would open doors for a re-test of the recent low of 105.55” he adds further.