Having posted 8-day low at 101.20, the USD/JPY pair has managed to bounce-off session low to currently trade back above 101.50 level.
The greenback remained under intense selling pressure on fading expectations of an eventual Fed rate-hike action in September and dragged the pair further below 50-day SMA support break point. However, a tepid greenback recovery, as measured by the overall US Dollar Index, assisted the major to recover some lost ground, albeit held on to daily losses for third consecutive session.
Later during NY trading session, the Federal Reserve Bank of Kansas City President Esther George's testimony on monetary policy and trade before the Financial Services sub-committee will be looked upon for fresh clues over possibilities of an eventual Fed rate-hike during 2016 and would provide fresh impetus for the pair. Meanwhile, the final print of Japanese quarterly GDP print will be in focus during early Asian session on Thursday.
Technical levels to watch
From current levels, any further recovery might now confront immediate resistance at 102.00 round figure mark above which the recovery could further get extended towards an important support break, not turned strong resistance, at 50-day SMA near 102.65 region. On the flip side, renewed selling pressure below session low support near 101.20 would now turn the pair vulnerable to break through 101.00 round figure mark and head towards testing its next major support near 100.70-65 area.
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