USD/JPY supply capping minor recovery, back below 102

The USD/JPY pair broke the Asian consolidation box finally to the upside and swung back into gains above 102 handle, before meeting fresh supply near 102.20 region.

USD/JPY fails to hold above 102 handle

The dollar-yen pair continues to move back and forth in a narrow range around 102 handle, as the markets remain torn between falling JGB yields and a broad based US dollar correction. Japan's JGB yields all drop below 0.1% for the first time ever, hitting all-time lows. While the USD index drops -0.33% to 96.20 levels, correcting lower from three-month tops.

Further, the recovery from Brexit-led sell-off finds support from an improved risk sentiment in the markets amid rebounding Japanese stocks and oil prices. Markets now look forward to fresh developments on the Brexit front amid a couple of key US macro updates due later in the American session.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 102.47/50 (Jun 27 high/ psychological levels). A break above the last, the major could test 103.19 (post-Brexit high). While to the downside, the immediate support is seen at 101.33 (daily S1) and below that at 101 (round figure).