USD/JPY extends pull-back from 4-month tops, slips below mid-113.00s

The USD/JPY pair extended it's sharp pull-back from 4-month tops and has now slipped below 113.00s, reversing over 100-pips from yesterday's swing highs. 

Majority of the pair's fall came after Donald Trump, Jr., released emails showed Russian support during his father's presidential campaign last year. The US political drama weighed heavily on the greenback through Asian session on Wednesday, with the key US Dollar Index sinking to fresh multi-month lows and dragging the pair to weekly lows. 

Adding to this, a fresh wave of global risk aversion trade provided an additional boost to the Japanese Yen's safe-haven appeal and further collaborated to the heavily offered tone surrounding the major.

Also collaborating to the USD weakness was the Federal Reserve Governor Lael Brainard's comments, suggesting a cautious approach towards raising interest rates and seems to have dampened expectations for additional Fed rate hike action this year.

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Hence, investors on Wednesday would remain focused on the Fed Chair Janet Yellen's semiannual testimony on the central bank's monetary policy outlook before the House Financial Services Committee, scheduled later during the NY session.

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Technical levels to watch

Immediate support is pegged near 113.30-25 region, below which the corrective slide could get extended towards the 113.00 handle before the pair eventually drops to its next major support near 112.35 level. 

On the upside, any up-move beyond 113.70-75 area now seems to confront resistance near the 114.00 handle, above which the pair is likely to aim back towards retesting multi-month highs resistance near mid-114.00s.