USD/JPY struggling to move back above 101.00 handle
|The USD/JPY pair faded a bullish spike beyond 101.00 handle and turned back into negative territory after comments from BOJ Governor Haruhiko Kuroda failed to convince traders that the central bank would opt to add further monetary stimulus.
Speak at the meeting with business leaders, in Osaka, BOJ Governor Haruhiko Kuroda that the central bank is ready to act and could deepen negative rates, or do more QE, if needed. The pair, however, ignored dovish comments and reversed quickly to currently trade around 100.85-80 band.
Meanwhile, the prevalent weakness in Asian equities was also seen supporting the safe-haven appeal of the Japanese Yen and, thus capped any further recovery for the major.
Later during NA session, traders will confront the release of new home sales data from the US and would also be awaiting the first US Presidential debate between Hillary Clinton and Donald Trump later on Monday.
Technical levels to watch
On a sustained move above 101.00 handle, the pair is likely to extend its recovery towards 101.35-40 resistance above which the recovery trend could get extended towards 101.85 resistance. On the flip side, weakness below session low support near 100.70 region is likely to accelerate the downslide to 100.30 support area, which if broken might turn the pair vulnerable to break through 100.00 psychological mark and head towards August monthly lows support near 99.65-60 region.
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