The bid tone around USD strengthened after upbeat US data; despite which the USD/JPY pair is struggling to secure a convincing break above 113.00 levels. Rejected at 113.16 The spot quickly jumped to 113.16 following the release of a better-than-expected US retail sales data, before falling back below 113.00 handle. As of writing, the pair traded around 112.90 levels. The odds of a break above 113.00 are high, given the upbeat action in the US stock index futures and strong US data. However, it remains to be seen if the traders continue to unwind JPY shorts ahead of the extended weekend or hold positions in anticipation of fresh risk-off next week after China makes a comeback from holiday. USD/JPY Technical Levels The immediate support is seen at 112.76 (hourly 50–MA), under which the spot could drop to 111.54 (127.2% of May 2015 high-Aug 2015 low-Nov 2015 high). On the other hand, a break above 113.59 (previous day’s high) could see the spot target 114.16 (100% fib expansion of May 2015 high-Aug 2015 low-Nov 2015 high). For more information, read our latest forex news.