USD/JPY pares gains, but holds above 116.00 handle

The USD/JPY pair pared early gains to session high level of 116.24 and is now seen flirting with 116.00 handle ahead of a scheduled news conference by President-elect Donald Trump.

The greenback traded mostly flat on Wednesday as investors seemed reluctant to initiate fresh dollar-long positions before getting further clarity over Trump's plans for the economy. 

Meanwhile, a positive opening in the European equity markets was seen denting the Japanese Yen's safe-haven appeal and helped the pair to hold in positive territory for the day.

In absence of any influential market moving releases, broader market risk sentiment and US Dollar price dynamics would be key determinants of the pair's movement on Wednesday.

Technical levels to watch

Momentum above session peak resistance near 116.25 region might lift the pair back towards 116.55-60 resistance area ahead of 116.95-117.00 resistance area. On the downside, 115.80-75 region seems to have emerged as immediate support, which if broken is likely to drag the pair back towards 115.10 strong horizontal support. A follow through selling pressure below 115.00 psychological mark now seems to open room for continuation of the pair's near-term corrective slide.