USD/JPY: Bulls face rejection at daily pivot, despite risk-on

The renewed rally in the USD/JPY lost steam just shy of 100.50 levels, sending the rate slightly lower amid persistent broad based US dollar selling.

USD/JPY reverts towards 100 barrier

Having bottomed out at 99.75 ahead of European open, the USD/JPY pair took on the recovery back beyond 100 handle, only to find fresh offers lined up near the mid-point of the last, despite risk-on sentiment. At the time of writing, the major trades almost unchanged at 100.27 levels.

The major erased most gains as the ongoing weakness surrounding the US dollar against its major peers, continue to keep the recovery capped. On the flip side, several jawboning attempts made by the Japanese MOF officials restrict the downside in the spot.

Markets now look forward to the US datasets, including the jobless claims and Philly Fed manufacturing index, for fresh momentum on the buck.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 100.49 (daily pivot). A break above the last, the major could test 100.69 (5-DMA). While to the downside, the immediate support is seen at 99.55 (Aug 16 low) and below that at 99.08 (post-Brexit lows).