USD/JPY weakens slightly, still holding above 104.00 level

After an initial weakness, Yen continues to attract safe-haven bid with the USD/JPY pair paring all of its early recovery gains and turn back into negative territory to currently trade within striking distance of 104.00 handle.

Earlier today, the pair advanced to as high as 104.83 and the recovery could primarily be attributed to short-covering after the pair's relentless fall to 22-month low on Thursday and a drop in access of 700-pips in last three weeks from late May high level of 111.45. 

Yen attracted fresh safe-haven buying interest, dragging the USD/JPY pair lower, as lingering fears over UK-EU referendum and its implication on UK / global economy continues to weigh on investor sentiment. 

Looking forward, the major would continue to derive its move from the prevailing risk sentiment across global equity market ahead of US housing market data, later during NA session.

Technical levels to watch

On a sustained weakness below 104.00 handle, leading to a follow through selling pressure below Thursday's low support near 103.55, the pair seems vulnerable to continue drifting lower towards 103.00 round figure mark. Meanwhile on the upside, recovery attempt further beyond 104.50 resistance might face resistance near 105.00 psychological level ahead of a major resistance near 105.50 level, which now seems to be any near-term recovery for the pair.