USD/JPY regains poise, takes on the recovery above 101.00

A sudden bout of buying interest caught the greenback across the board, lifting USD/JPY back above 101 handle in early Europe.

USD/JPY bounces-off 100.50

After a brief phase of consolidation around 100.60 levels, the dollar-yen pair gathered pace for next leg higher and now jumps back above 101 handle, after having staged a 150-pips recovery from 99.55 levels reached yesterday.

The ongoing recovery in the major is backed by hawkish Fed talks and Japanese ministry of finance official, Asakawa’s jawboning attempts to stem the yen’s appreciation. Moreover, a bout of profit-taking after the recent downfall cannot be ignored, as investors seek to adjust their positions before the FOMC minutes release due out later today.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101.23/31 (daily R1/ Aug 16 high). A break above the last, the major could test 101.48 (10-DMA). While to the downside, the immediate support is seen at 100 (key support) and below that at 99.55 (2-month lows).