USD/JPY sell-off intensifies amid negative equities, 103 eyed

Dhwani Mehta FXStreet

The USD/JPY pair extends its retreat from above 104 levels and meets fresh supply near 5-DMA in early Europe, now knocking-off the major back below the mid-point of 103 handle.

Yen regains footing amid risk-off

The JPY bulls finally took over complete control in the European session, after a renewed risk-aversion wave hit the markets as the European equities fell back in the red zone.

Moreover, fresh selling in the greenback against its major rivals, triggered by the extension of losses in the 2-year treasury yields, also dragged the USD/JPY pair deeper into the red zone.

The USD/JPY pair is seen last exchanging hands at 103.34, moving-off daily lows of 103.25, still down -0.47% on the day. Later today, the major will get influenced by the US datasets, Fed’s Beige book and Fedspeaks.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 103.96/104 (5-DMA/ round figure). A break above the last, the major could test 104.50 (psychological levels) and 104.63 (3-month high) beyond the last. While to the downside, the immediate support is seen at 103.00 (key support) next at 102.87 (20-DMA) and below that at 102.56 (100-DMA).

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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