USD/JPY keep red near 113.50 level ahead of BoJ presser

The USD/JPY pair traded with bearish bias for the second consecutive session and is now heading back to daily lows, touched in the aftermath of BoJ decision. 

Currently trading around 113.45 region, the pair came under some renewed selling pressure on Tuesday after BoJ decided to leave its monetary policy unchanged while extended the debt buying for its loan program by 1-year. 

Meanwhile, investors' risk appetite deteriorated further after the US President Donald Trump fired acting US Attorney General Sally Yates. Worsening risk sentiment boosted the Japanese Yen's safe-haven appeal and further collaborated to the offered tone surrounding the major.

Focus now shifts to the BOJ presser, which would provide fresh cues on the central bank’s near-term monetary policy outlook and hence, drive the pair from current levels. 

Technical levels to watch

A follow through weakness below 113.25 immediate support is likely to accelerate the slide towards 113.00 round figure mark before the pair eventually drops to its important support near 112.60-50 region. On the upside, sustained move above 113.75 immediate resistance now seems to lift the pair beyond 114.00 handle towards 114.20 resistance area, en-route 114.50 strong hurdle.