USD/JPY holds above 103.00

USD/JPY entered a consolidation phase in holiday-thinned trade given the US Labor Day Holiday. 

USD/JPY dropped more than a hundred pips from Friday’s peak of 104.30 but the downside was contained by the 103.14, leaving the pair trapped in a range where it has spent the last hours. At time of writing, USD/JPY is trading at the 103.30 zone, recording a 0.65% loss on the day.

The yen strengthened on Monday despite BoJ Kuroda's comments, who showed willingness to ease further using existing or new tools. 

USD/JPY levels to watch

In terms of technical levels, next supports are seen at 102.65 (50-day SMA), 101.82 (10-day SMA) and 101.00 (psychological level). On the flip side, resistances could be faced at 103.54 (Sep 2 high), 103.99 (Sep 1 high) and 105.36 (100-day SMA).