USD/JPY clings to gains, looks to retake 101.00

The selling bias around the Japanese currency remains intact so far today, pushing USD/JPY to the vicinity of the 101.00 handle after climbing to highs near 101.30.

USD/JPY now looks to Fedspeak

The pair has managed to rebound from the psychological support at 100.00 the figure on Thursday, posting gains for the second consecutive session despite the greenback continues to struggle for direction.

In the meantime, JPY continues to shed ground after the strong advance seen in the first half of the week, as market participants seem to be cashing up part of the recent gains.

Sentiment around JPY still remains tilted to the bullish side after the BoJ has failed to regain markets’ trust in its ability to spur inflation expectations, and thus reaching the 2% target. Scepticism around the central bank seems everything but abated, and this promises to be a tough hurdle to break for the pair in order to resume its upside in a more sustainable fashion.

USD/JPY levels to consider

As of writing the pair is up 0.21% at 100.96 facing the immediate hurdle at 101.24 (high Sep.23) followed by 102.24 (20-day sma) and then 103.36 (high Sep.14). On the other hand, a breach of 100.07 (low Sep.22) would open the door to 99.53 (low Aug.16) and then 99.08 (low Jun.24).