USD/JPY retreats to 102.80 as risk-rally loses steam
Amid a quiet Asian session, the US dollar gave back post-NFP gains against its Japanese currency, sending USD/JPY back below 103 handle.
USD/JPY rejected ahead of 5-DMA at 103.26
The dollar-yen pair witnessed a bullish opening gap this Monday and jumped to 103.35 levels, mainly driven by a sharp rally in EUR/JPY as a renewed risk-on wave hit markets after probability of Trump winning the second US election debate dropped, following his weekend’s vulgar remarks on women.
However, the major quickly wiped-out gains and fell back below 103 handle on the back of a major turnaround in risk conditions after the 2nd US presidential debate ended, showing that Trump’s performance improved from the previous. USD/JPY is last seen exchanging hands around 102.88 levels, almost unchanged on the day.
Later today, amid a lack of fresh fundamental triggers and holiday-thinned trades, markets will continue to absorb the US jobs report alongside the outcome of the second US election debate. Japan markets are closed today for Health and Sports day and US markets closed for Columbus Day.
USD/JPY Technical levels to watch
In terms of technicals , the immediate resistance is located at 103.34/47 (daily high/ post-NFP high). A break above the last, the major could test 104.00 (round figure) and 104.50 (psychological levels) beyond the last. While to the downside, the immediate support is seen at 102.59/47 (100 & 10-DMA), next at 102.00 (key support) and below that at 101.80/76 (50 & 20-DMA).