USD/JPY trims daily losses

The Japanese yen benefited from the risk-off environment and dragged USD/JPY to its lowest level since the post-Brexit day.

Flight to safety has kept the yen and government bonds on demand amid lingering political and economic uncertainty. USD/JPY lost nearly 150 pps throughout the day and printed a low of 100.19 before staging a mild recovery. At time of writing, the pair is trading at 100.85, still 0.85% below its opening price.

On the data front, US services PMIs and FOMC minutes will be the highlights of the session ahead of Friday’s nonfarm-payrolls.

USD/JPY levels to consider

As for technical levels, USD/JPY could find immediate resistances at 101.75 (Jul 6 high), 102.67 (10-day SMA) and 103.38 (Jul 1 high). On the downside, supports are seen at 100.19 (Jul 6 low), 100.00 (psychological level) and 98.98 (Jun 24 low).