USD/JPY building on recovery gains beyond 100.00 level after US data

US economic releases provided a much needed respite for bulls, with the USD/JPY pair extending its recovery back above 100.00 mark to currently trade near session high around 100.40 level.

According to the data released on Thursday, US initial jobless claims fell by 4k to a seasonally adjusted 262k during the week ending August 13. The reading was better-than consensus estimates that forecasted a small drop to 265k. Meanwhile, the Philly Fed Manufacturing Index matched expectations and came-in at +2.0 for August as compared to -2.9 recorded in July. 

However, further up-move was restricted as investors remained skeptic over prospects of an eventual Fed rate-hike action during 2016, which has been weighing on the greenback since last two weeks. Hence, traders will now focus on comments from the New York Fed President William Dudley at a press briefing about economic conditions. 

Technical levels to watch

From current levels, further up-move is likely to confront resistance near 100.80 level, above which the pair seems all set to extend its recovery trend beyond 101.25 resistance, towards its next major resistance around 101.85-90 region. On the flip side, renewed weakness below 100.20, leading to a break back below 100.00 psychological mark, would negate possibilities of any further recovery and drag the pair below session through support near 99.65 level towards testing Brexit swing low support near 99.00 round figure mark.