USD/JPY fails to resist above 104 handle

The USD/JPY pair meets fresh supply on a brief break above 104 handle, and now consolidates in familiar range below the last, as markets eagerly await fresh cues from the European open.

USD/JPY finds fresh bids near 103.80

The dollar-yen pair has recovered more-than 100-pips from yesterday’s low and now awaits a decisive break above 104.20 levels for further upside. The major is seen riding higher on broad based US dollar strength, backed by rising treasury yields amid a better risk market profile.

However, the spot failed to sustain above 104 handle and receded slightly lower, as the US dollar paused its rally against most of its major, following dovish remarks by Chicago Fed president Evans.

With second-tier economic releases  due out from the US docket later today, focus now shifts towards Japan’s core machinery orders data, Fedspeaks and FOMC minutes due on the card tomorrow.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 104.17 (multi-week highs). A break above the last, the major could test 104.50 (psychological levels) and 105.34 (July 29 high) beyond the last. While to the downside, the immediate support is seen at 103.49 (5-DMA), next at 103.00 (key support) and below that at 102.83 (10-DMA).