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).
- R3 102.90
- R2 102.37
- R1 101.70
- PP 101.17
- S1 100.51
- S2 99.98
- S3 99.31
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.