USD/JPY volatile near 106 as Abe confirms JPY 28tln stimulus

The retreat in the USD/JPY pair from above 106.50 levels gained traction in the early European trading, following Japan on Abe’s comments on the stimulus package.

USD/JPY: Yen recovers losses

The dollar-yen pair almost tested 105 handle, before finding fresh bids near the last to bounce-back towards 106 handle, as markets digest latest comments from Japan PM Abe, confirming the size of the stimulus package at 28 trillion yen, while adding the package will be compiled next week.

In the day ahead, the yen markets are likely to experience huge volatility amid ongoing headlines on the Japanese stimulus measures. While the main risk event for today remains the FOMC decision due later in the American afternoon.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 106.54 (daily high). A break above the last, the major could test 107 (round number). While to the downside, the immediate support is seen at 104.89 (50-DMA) and below that at 104 (round number).