USD/JPY surges to 6-day high

The Japanese Yen continues to weaken across the board, with the USD/JPY pair surging through 101.50 resistance to hit a six-day high level of 101.70.

The preliminary OPEC deal to cap output in order to stabilize oil prices triggered a risk-on rally across global markets, resulting a move away for the perceived safety of Japanese Yen and lifting the major sharply higher.

Moreover, possibilities of stops getting triggered on a sustained move above 101.50 level could have also contributed to the pair's up-surge in the last one hour of trading. 

Further up-move, however, might be restricted as traders look forward to BOJ Governor Haruhiko Kuroda's speech at the National Securities Industry Convention in a short-while from now.

Later on Thursday, the final print of US Q2 2016 GDP growth will take the centre stage. US economic docket also features the release of weekly jobless claims and pending home sales data.

Technical levels to watch

From current levels, 50-day SMA near 101.95-102.00 region is likely to act as immediate resistance, which if cleared might trigger a fresh bout of short-covering and continue boosting the pair further towards 102.60-65 horizontal resistance.

On the downside, 101.40-30 area now becomes immediate support to defend below which the bullish momentum might get negated and the pair could drift back below 101.00 handle towards retesting 100.30 strong support area.