USD/JPY: Struggle with 104.00 continues…

USD/JPY is seen making another attempt to extend its upmove well beyond 104 handle, despite broad based USD strength remaining the key theme in Asia this Monday.

 USD index hits 8-month tops

The recovery in the USD/JPY pair from 103.50 levels continues to find strong sellers at 104 handle, as the risk sentiment remains under pressure amid continued weakness in the Yuan and weaker oil prices, thus keeping the safe-haven yen underpinned somewhat.

Moreover, stronger Japanese manufacturing PMI and trade balance data also offers some support to the Japanese currency against its American counterpart.

Although sustained strength in the greenback against the main competitors continues to aid the recovery in the major from last week’s low reached at 103.15 levels. Meanwhile, the USD index rises to fresh eight-month highs of 98.82, looking to reclaim 100 handle sooner.

The USD/JPY pair is seen last exchanging hands at 103.94, hovering within a striking distance of 104 handle, up 0.16% on the day.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 104.18 (daily R3). A break above the last, the major could test 104.50 (psychological levels) and 104.63 (3-month high) beyond the last. While to the downside, the immediate support is seen at 103.82 (5-DMA) next at 103.48 (20-DMA) and below that at 103.00 (key support).