USD/JPY: capped before bulls could break 103.00

USD/JPY has dropped a handfull of pips in the open of Tokyo, but critically extending the correction of 101.30 rally.

USD/JPY has been on the march this week with persistent risk appetite as markets digest and swallow the recent concerns about Global growth, Deutsche Bank and high oil prices. However, the ECB news took its toll on Wall Street and capped the yen's decline on the hand over to early Asia. Meanwhile, we have had news hit the wires in a Bloomberg report that PM Abe says he is not thinking at all of calling an early election - there has been no yen-market reaction thus far. We also had Fed's Evans speaking, Fed's Evans: Rate hike path should be very shallow.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet noted that the pair has stalled its advance around its 100 DMA, still strongly bearish, having been unable to trade above it since early February. " In the 4 hours chart, the price is well above its moving averages, while technical indicators have lost upward strength within overbought readings, suggesting some consolidation ahead of the next directional move."

Global markets overview: a firm start for USD - ANZ