USD/JPY bounces-off 99.65 as USD selling stalls

The offered tone behind the US dollar weakened a bit in the Asian morning, allowing a minor-recovery in the USD/JPY pair back towards 100 handle.

USD/JPY eyes Tuesday’s low?

The dollar-yen pair reversed entire gains seen yesterday and fell sharply lower following the release of the FOMC meeting minutes, which showed divergence amongst the Fed member on whether a rate hike would be needed in the upcoming months.

On Thursday, the USD/JPY pair extends the overnight slide and remains heavily sold-off amid persistent broad based US dollar weakness, triggered by uncertain Fed decision. Moreover, the yen remains strongly bid, despite weaker Japanese trade data, as risk-off market profile continues to underpin the safe-haven bids for the Japanese currency.

While the Japanese MOF official Asakawa’s renewed jaw-boning attempts today were also ignored by the yen markets, as focus shifts towards the US fundamentals due later in the American session.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 100 (key resistance). A break above the last, the major could test 100.56 (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).