USD/JPY capped by 102.50 offers

FXStreet (Bali) - USD/JPY has been hovering around the 102.40 for the last few hour of trading, with interest remaining fairly low.

The Nikkei 225 has been on a rebound since the open, currently up 0.7%, following inflation data in Japan, which revealed a 22-year high in the Tokyo April CPI on effects of the sales tax hike.

From a technical perspective, the pair is confined in a 3 cents range, with the latest price action sugesting strong interest to defend the key 50% fib retrac from the 104.00 - 101.30 decline.