USD/JPY attempts a tepid bounce towards 101.50

The bears appear to loosen their grip last minutes, allowing a tepid bounce in the USD/JPY pair back towards the mid-point of 101 handle, in wake of a minor-recovery staged by the Japanese stocks.

USD/JPY finds support near 101.20

The bulls were rescued by a minor-recovery witnessed in the Asian equities, helping the USD/JPY pair stall its relentless slide near 101.20 levels. Moreover, renewed optimism seen in the commodities space also helps ease risk-off sentiment somewhat, and thereby, diminishing the safe-haven bids for the JPY.

At the time of writing, USD/JPY recovers to 101.45, still down -0.45%, while the Nikkei 225 index now drops -0.29% versus a fall of -0.40% seen previously.

However, the major still continues to trade with size-able losses, largely on the back of extended sell-off in the US dollar against its major peers, fuelled by falling treasury yields a day before. While better-than expected Japanese core machinery orders also continue to underpin the Japanese currency.

Next of note for the major remains US JOLTS job openings data due later in the NA session. In the meantime, the spot will continue to track the broader market sentiment for fresh momentum.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101.76 (10-DMA). A break above the last, the major could test 101.91/102 (5-DMA/ round number). While to the downside, the immediate support is seen at 101 (psychological levels) and below that at 100.84 (Aug 5 low).