USD/JPY attempts tepid-bounce above 104, will it sustain?

The bears appear exhausted after the BOJ-led rout, allowing a minor-recovery in the USD/JPY pair from more-than two-year troughs.

USD/JPY finds bids ahead of 103.50

The USD bulls breathed a sigh of relief as the USD/JPY pair makes minor-recovery attempts back on 104 handle, as markets sought to take profits off the table after the massive sell-off. The major plummeted to the lowest levels since Aug 2014 at 103.56 after the BOJ’s decided to leave the monetary policy settings unadjusted rates on-hold, while the BOJ governor Kuroda sounded upbeat on the Japanese economy, thereby justifying BOJ’s wait and see mode. At the time of writing, USD/JPY sinks -1.78% to 104.14, looking to regain 104.50 levels.

However, the recovery looks short-lived as the safe-haven appeal of the yen remains untouched amid risk-off trades on the European markets and falling oil prices. Markets now await the US dataflow, including the CPI figures, for fresh momentum on the major.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 104.34 (monthly 50-MA). A break above the last, the major could test 105 (round number). While to the downside, the immediate support is seen at 103.50 (Multi-year low) and below that at 103 (Aug 2014 low).