USD/JPY reverses a freak spike to 101.78

Dhwani Mehta FXStreet

The USD/JPY pair experienced wild swing to the upside, having finally broken higher from a brief phase of consolidation near 101 handle.

USD/JPY rebounds sharply as Yen gets hit

The Japanese yen witnessed aggressive selling last minutes, sending the USD/JPY pair almost 80-pips higher towards yesterday’s highs, before meeting fresh supply at 101.78 to now trade around 101.50 levels.

Markets see no catalyst behind the freak spike in USD/JPY a few minutes ago, with the bulls having found strong support near the confluence of 5 & 10-DMA around 100.85/80.

Although, BOJ intervention chatter is doing the rounds and cannot be ruled out as a possible reason behind the yen selling. Meanwhile, the Japanese markets keep the red, as the Nikkei 225 index dives -1.55% amid risk-aversion.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101.84 (weekly high). A break above the last, the major could test 102 (round figure) and 102.41 (Aug 29 high) beyond the last. While to the downside, the immediate support is seen at 100.84 (NY low), next at 100.62 (Sept 29 low) and below that at 100.50 (psychological levels).

1. R3 102.90
2. R2 102.37
3. R1 101.70
PP 101.17
1. S1 100.51
2. S2 99.98
3. S3 99.31

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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