The USD/JPY pair extended overnight rebound from 7-day low and has now reversed majority of its looses recorded in the previous session.
Currently trading near session peak, around 103.75-80 region, the pair managed to hold and rebound from 100-day SMA support on Wednesday amid renewed greenback buying interest following the third and last US Presidential debate, which pointed to an eventual win for Hillary Clinton at the upcoming US Presidential election in November.
Meanwhile, an upbeat sentiment around equity market is further weighing on the Japanese Yen's safe-haven appeal and extending support to the pair's recovery momentum on Thursday.
Moving ahead, ECB monetary policy decision would grab market attention on Thursday and could infuse a fresh bout of volatility in the FX market, which would eventually derive Yen's safe-haven demand and provide some impetus for the pair. Later during NA session, traders will also confront US economic data that include - Philly Fed manufacturing index, weekly unemployment claims and existing home sales data.
Technical levels to watch
Immediate resistance on the upside is seen at 103.90-95 region (nearing 104.00 handle) above which a fresh bout of short-covering is likely to boost the pair immediately towards 104.30 resistance en-route multi-month high resistance near 104.64 level.
On the downside, 103.50-45 area now seems to act as immediate support, which if broken might drag the pair back towards 100-day SMA support near 103.00 handle. A convincing break below 100-day SMA would open room for continuation of the pair's corrective move in the near-term.
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