USD/JPY recovers half the BOJ/Fed-led slide

The USD/JPY pair keeps its recovery mode intact from four-week lows, and now consolidates the upside as markets await fresh incentive for the next push higher.  

USD/JPY takes-out 101.00

The dollar-yen pair finally took-out 101 handle at Tokyo open and rallied almost 30-pips from there, before finding some resistance near 101.25 region. At the time of writing the major trades +0.38% higher at 101.13, with the bulls now eyeing a break above 101.25 for further upside.

The major almost reversed half the BOJ and Fed disappointment induced sell-off and extended its rebound in Asia, as the US dollar held firmer broadly on the back of a short-covering rally after the recent weakness. More so, the spot remained completely unperturbed by poor risks sentiment, as the rhetoric intervention talks by the Japanese government officials also remained a drag on the yen.

The major will continue to track the broader market sentiment and remain at the mercy of USD flows amid a lack of fresh economic data due for release later today. While focus shifts towards the Fed speaks and US key macro news lined up for release next week.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101.50 (psychological levels). A break above the last, the major could test 101.75/82 (10 & 50-DMA) and 102 handle beyond the last. While to the downside, the immediate support is seen at 100.59 (daily pivot), next at 100.07 (four-week lows) and below that at 99.53 (mid-Aug lows).