USD/JPY off-lows, back above 101.00

The USD/JPY pair ran through fresh sellers in late-Asia and dropped sharply to 100.75 levels, before recovering some ground to now waver around 101 handle.

USD/JPY sees a 25-pips sharp recovery

The dollar-yen pair quickly regained ground after a brief sell-off to session lows as the yen remains under pressure expectant of the outcome from the BOJ, FSA and MOF joint meeting scheduled in less than an hour from now.

In late-Asian session, the USD/JPY pair witnessed a sharp 50-pips drop to 100.75, with no specific fundamental trigger seen behind the move. The major now resumes the correction higher after having relentlessly offered a day before in wake of huge disappointment from the Japanese economic stimulus package.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101.34 (daily high). A break above the last, the major could test 101.73 (5-DMA). While to the downside, the immediate support is seen at 100.75 (daily low) and below that at 100.02/100 (Jul 8 low/ big figure).