USD/JPY hits fresh highs above 103.00 and retreats

USD/JPY  printed a fresh daily high at 103.04 and then pulled back but remained with a bullish tone and above the 20-hour moving average.

Hours ago, speculations about further rate cuts in Japan weakened the yen in the market and pushed USD/JPY to the upside. Recently, Fed’s Rosengren comments about the possibility of a rate hike gave more bullish momentum to the US dollar in the market and send USD/JPY above 103.00.

The pair failed to hold on top and declined to 102.52 and it was trading at 102.72/76, 30 pips above yesterday’s closing price. The retreat from the highs was triggered by risk aversion across financial markets that favored the yen. The Japanese currency erased losses against European currencies and rose further versus the loonie, the aussie and the kiwi.

Technical levels

To the downside, support levels could now be seen at 102.40 (20-hour moving average), 101.95 (daily low) and 101.40 (Sep 08 low). On the flip side, resistance might lie at 103.05 (daily high), 103.50/55 (Aug 31 high) and 103.80 (Sep 06 high).