USD/JPY in search of a firm direction, stuck in a range below mid-111.00s

The USD/JPY pair struggled for a firm direction and remained confined within 30-pips broader trading range amid subdued trading action on Monday.

Friday's upward revision of the US Q1 GDP growth numbers underpinned the US Dollar demand, while N. Korea's latest ballistic missile test supported the Japanese Yen's safe-haven appeal and has eventually led to a range-bound price action at the start of a new trading week.

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Moreover, traders preferred to remain on the sidelines and refrained from initiating any fresh trading positions amid holiday thinned liquidity conditions, with the UK and the US markets closed in observance of the Spring Bank Holiday and Memorial Day, respectively.

Meanwhile, market seems to have fully priced-in an eventual Fed rate-hike action at its June meeting and hence, investors this week would now look forward to the crucial monthly jobs report from the US - NFP, which might influence market expectations for additional Fed rate-hike moves through 2017 and eventually help determine the pair's next leg of directional move.

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Technical levels to watch

Immediate resistance is pegged near mid-111.00s, above which the pair seems to make a fresh attempt to clear 111.80-85 resistance area and aim towards reclaiming the 112.00 handle. On the downside, weakness below session lows support near 111.15 level could get extended towards an important horizontal support near 110.85 area, below which the pair seems vulnerable to head back to one-month lows support near 110.25 region, touched last last week.