USD/JPY eases further towards 100.50 as risk-off returns

Having failed just shy of 101 handle, the USD/JPY pair extends its retreat in the mid-European session, now reverting towards the mid-point of 100 barrier.

USD/JPY trims gains amid tumbling oil

A renewed bout of risk-aversion gripped the markets and rescued the yen bulls over the last hours, as the European stocks turned negative after oil-price sell-off intensified and crushed investors’ confidence across the board.

The dollar-yen slumped to fresh session lows at 100.59 last minutes, as the JPY bulls are on track to completely wipe-out BOJ Governor Kuroda’s dovish comments backed losses in the yen against the American dollar.  

The major witnessed a bullish opening and rallied as high as 100.94 earlier on the day, as markets  sold-off the yen on Kuroda’s comments, which cited that  the BOJ may add more monetary stimulus to the economy, if necessary, at its next policy meeting in September.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101 (psychological levels). A break above the last, the major could test 101.26 (20-DMA). While to the downside, the immediate support is seen at 100.29 (daily low) and below that at 100.00 (round figure).