USD/JPY recedes gains to test 100.00

The recovery seen in the USD/JPY pair during the Asian session lost pace near 100.50 levels, sending the rate lower in a bid to retest 100 handle.

USD/JPY attacks 100 barrier

The dollar-yen pair dropped sharply over the last hour, after the bulls ran into a strong resistance placed near 100.50. At the time of writing, the major trades +0.20% higher at fresh session lows reached at 100.04.

The major came under fresh selling pressure after the European indices opened on the negative note, triggering a renewed bout of risk-aversion across the board, and thus lifting the safe-haven bids for the yen. Moreover, stalled recovery in the oil prices also weighed on the investors’ sentiments, boosting the demand for safety bets.

The major will continue to take cues from the broader market sentiment in absence of economic data lined up for release today.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 100.50 (psychological levels). A break above the last, the major could test 100.88/97 (daily R2/ 10-DMA). While to the downside, the immediate support is seen at 100.00 (daily pivot) and below that at 99.55 (Aug 16 low).