USD/JPY – Bullish move stalls near 50% Fibo of Brexit drop

Bullish momentum in the USD/JPY pair ran out of steam at 102.80 (50% of Friday’s fall) following which the pair is losing height.

Trades below 102.50

At the time of writing, the spot was trading just below 102.50. The bird failed to take out 102.80 in the NY session and made another attempt at the same in Asia before turning lower. The upwardly revised US Q1 GDP released in the NY session added to the bid tone around USD, however, political chaos in Europe is keeping bulls at the bay.

Nevertheless, a minor bullish move to near 102.80 levels did help Nikkei to score 1% gain. The pair remains at the mercy of the action in the European markets. Later in the day, US personal spending and income report could influence the demand for the US dollars.

USD/JPY Technical Levels

A break above immediate hurdle at 102.80 could open up upside towards 103.75 (61.8% of Friday’s drop + 10-DMA) and 104.00 levels. On the lower side, 101.85 (38.2% of Friday’s drop) could act as a support, which if breached would shift risk in favor of a re-test of 101.40 (June 27 low) and 101.00 levels.