USD/JPY reverses back below 102.00 handle
|The USD/JPY pair ran through fresh offers at higher level and retraced sharply from 5-day peak to currently trade back below 102.00 handle.
In the post-BOJ trading action, the pair once again faced rejection from just above 50-day SMA as markets seemed disappointed from the central bank's decision to refrain from taking interest-rates further into negative territory and leave it unchanged at -0.1%. At the time of writing the major was trading nearly unchanged from yesterday’s closing level around 101.70-75 band.
Focus now shifts to the yet another talked about, Fed monetary policy decision due later during NY trading session. The US central bank is widely expected to stand pat and hence, focus would be on the accompanying rate-statement, FOMC's latest economic projections and subsequent press conference, which would be looked upon for timing of next Fed rate-hike action and would determine the next leg of directional move for the major.
Technical levels to watch
Bulls would be disheartened if the pair breaks back below 101.40 immediate support. Below 101.40 support the pair gets exposed to 3-week lows support near 101.00 handle below which a fresh leg of weakness is likely to drag the pair back towards 100.00 psychological mark.
Conversely, on a sustained move back above 102.00 handle the pair could make a fresh attempt to surpass 50-day SMA resistance near 102.60 region, which if conquered should immediately aim for its next resistance near 103.35-40 area.
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