Having struggled to gain traction, the USD/JPY pair ran through some fresh offers and has now dropped to session lows near 113.40-35 region following disappointing US macro data. Data released from the US showed headline CPI rose 0.2% m-o-m in April (0.2%) expected and the yearly rate dropped to 2.2% as compared to 2.4% previous. The disappointment, however, came from core CPI print (excluding food and energy), which rose a mere 0.1% during the same period, with the yearly rate slumping to 19-month low level of 1.9% and below Fed's 2.0% target. Adding to the disappointment, monthly retail sales also missed expectations and came-in to show a growth of 0.4% during the month of April, albeit was still better than previous month's tepid growth of 0.1% (revised higher from -0.2% reported earlier). Although today's data might have done little to dent market expectations for an eventual Fed rate-hike action in June, but pointed to easing inflationary pressure in the economy. Easing prices could possibly hinder the central bank's rate-tightening cycle and hence, attracted some selling pressure around the US Dollar. Meanwhile, the prevalent cautious environment, ahead of the G7 meeting, continued benefitting the Japanese Yen's safe-haven appeal and also collaborated to the pair's sharp slide during early NA session. A follow through selling pressure now seems to drag the pair below the 113.00 handle towards its next support near 112.75 level. On the upside, any recovery move above 113.55 level now seems to confront strong resistance near 113.80-85 region, above which a bout of short-covering could lift the pair back towards the 114.00 handle en-route 114.25 strong hurdle.