USD/JPY extends recovery momentum beyond 102.00 handle

The USD/JPY pair was seen building on to its momentum back above 50-day SMA and has now reclaimed control over 102.00 handle. 

Currently trading around 102.25, the pair extended its recovery trend from the vicinity of 100.00 psychological mark for the sixth straight session and jumped to the highest level since Sept. 21. The pair is benefitting from the prevalent risk-on sentiment, which seems to be driving investors away from the perceived safety of the Japanese Yen.

Meanwhile, Monday's release of stronger-than-expected US ISM manufacturing PMI is further assisting the greenback to extend the ongoing recovery trend against its Japanese counterpart. 

In absence of any major economic releases from the US, the pair would continue to be driven by investors' appetite for riskier assets that would be the key factor deriving safe-haven demand for the Japanese Yen. 

Technical levels to watch

Immediate upside resistance is pegged at 102.50 level above which the pair is likely to aim towards 102.78-80 (Sept. 21 high) before making an attempt to reclaim 103.00 handle.

On the flip side, weakness back below 102.00 handle might now find immediate support at 50-day SMA near 101.75-70 region, which if broken might could drag the pair back towards 101.00 round figure mark.