USD/JPY recedes to 102.30 as Nikkei pushes lower

The USD/JPY pair met fresh supply near 102.70 region and reverted towards 102 handle, bringing an end to a solid pullback seen during mid-Asia.

USD/JPY sold-off at 102.69

The Japanese yen regained lost footing somewhat versus its American counterpart over the last hour, as risk-on sentiment took a hit after the Asian stocks turned lower, tracking the retreat in the Japanese indices. At the time of writing, USD/JPY hovers near 102.40 levels, recovering slightly from a dip to 102.32, up +0.38% on the day, while the Nikkei 225 index trades +0.25% just ahead of 16,600 levels versus +0.60% seen previously.

Moreover, BOJ’s disappointment coupled with poor US GDP numbers continue to keep any recovery in the major short-lived. On Friday, the US economy grew at an annualized pace of 1.2% of GDP in Q2, up from 1.1% hike seen in the first quarter. Market had predicted an acceleration to a 2.6% rise in the second quarter.

Meanwhile, markets digest Fed official Dudley’s comments ahead of the US ISM manufacturing PMI data due later in the NA session.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 103 (round number). A break above the last, the major could test 103.54 (5-DMA). While to the downside, the immediate support is seen at 102 (round number) and below that at 101.43 (Jul 5 low).