USD/JPY fails to sustain a break above 102 handle

The bulls finally conquered 102 handle, although failed to sustain above it and retreated sharply from there to now trade around 101.85 levels.

USD/JPY tracks Nikkei higher

The recovery in the USD/JPY gained traction during late-Asia as the Japanese stocks regained poise, sending the rate back above 102 handle. However, the bears fought back control and dragged the pair below the last, despite ongoing broad based US dollar recovery from Fed Brainard-led slump.

At the time of writing, USD/JPY wiped-out gains to trade around 101.85, while the USD index edges +0.08% higher to fresh session highs at 95.22.

Markets now await the European open for fresh impetus on the major. While attention turns towards the US retail sales and CPI data due later this week, in absence of relevant economic data due today and tomorrow.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 102.05 (daily high). A break above the last, the major could test 102.28 (5-DMA). While to the downside, the immediate support is seen at 101.42/29 (daily low/ Sept 8 low) and below that at 101.18 (2-week low).