Having peaked ahead of 113.80 levels in the last hour, the USD/JPY pair dropped sharply below the mid-point of 113 handle, before finding fresh bids at the last. USD/JPY side-lined below 114 ahead of Yellen The dollar-yen pair continues its choppy trend in the mid-European session, moving back and forth in a 40-pips range, unable to find a clear direction as markets remains wary amid headlines flowing from the Japanese Government over the FY 2016 budget on one hand, while mixed comments from Fed official Williams sparked some fresh USD selling. At the time of writing, USD/JPY recovers to 113.69, still up 0.21% on the day. With the Japanese economic data out of the way, attention now shifts towards the US consumer confidence and S&P/CS Composite-20 HPI data due later in the NY session. While the key risk event for today remains Fed Chair Yellen’s speech for next direction on USD/JPY. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 114 (round number). A break above the last, the major could test 114.22/45 (50-DMA/ Mar 10 High). While to the downside, the immediate support is seen at 113.15/00 (Mar 28 Low/ 1h 100-SMA) and below that at 112.87 (20-DMA & daily S2). For more information, read our latest forex news.