USD/JPY off session low, flirting with 102.00 handle

Having posted a session low at 101.73, the USD/JPY pair managed to recover all of its lost ground and has now turned neutral to currently trade around 102.05-10 band. 

The pair remains void of a firm near-term direction and has been moving back and forth around 102.00 handle amid the prevalent uncertainty over the next policy move by the Federal Reserve and Bank of Japan. Both the central banks are scheduled to announce their respective monetary policy decision on September 21.

Later during NA trading session on Friday, traders would now look forward to the release of US CPI print for August along with the preliminary release of Reuters/Michigan Consumer Sentiment Index for September in order to grab short-term trading opportunities. 

Technical levels to watch

Immediate upside resistance is pegged at 102.45-50 zone, which is closely followed by 50-day SMA resistance near 102.70-75 region. A sustained move above 50-day SMA resistance should now lift the pair beyond 103.00 handle towards retesting weekly high resistance near 103.35 level. 

On the downside, weakness below 101.75-70 (session low) is likely to get extended towards 101.40-35 support, which if broken seems to drag the pair back towards 101.00 round figure mark.