Today's lowest of the session so far is found within 99.38/45 demand, 99.43 to be precise. However, most of the demand at that level is expected to be weak as few unfilled orders may remain after current pullback being the second that enters the area.
According to Ivan Delgado, Head of Asian Editors at FXstreet.com: "It looks like the USD/JPY is having an awful time trying to break above the 100.00 area. With price approaching weekly supply 1001.0/101.50, two failed attempts to get much follow through to conquer the big round number, and most importantly, no clear intraday demand near by other than 99.45/38 - with most unfilled buy orders thought to have been filled now -, the danger of a deeper correction lower is rising..."
Meanwhile, Adam Button, Editor at Forexlive, notes: "If you’re a small trader this is the kind of time where it pays to be nimble. If USD/JPY fails to break 100 for a second day, there is a chance it could head lower — and a chance it could be much lower. If you’re long here and want to stay long, you can close out the trade and put a buy order just above 100. You’re sacrificing maybe 15 pips in a market looking like it’s having an awfully difficult time moving higher."
The market is now awaiting Bank of Japan Governor Kuroda’s speech at 3:10 GMT at a Yomiuri International Economic Society event, details will be embargoed until 4 GMT.