USD/JPY struggles with 101 handle amid negative equities

The yen retraced a part of early gains and now gives way to the USD/JPY pair to reclaim 101 handle as the Japanese stocks pares losses, offering some respite to the bulls.

USD/JPY ignores broad USD weakness

The USD bulls regain footing somewhat in the late-Asian trades, allowing a minor-recovery in the USD/JPY pair back onto 101 barrier, as the bulls found fresh bids near 100.75 region. At the time of writing, USD/JPY drops -0.30% to 101.03, moving away from session lows struck at 100.75.

Moreover, the yield differentials between the 10-yr JGBs and treasuries have turned JPY-negative, which provides extra legs to the recovery in the major.

Looking ahead, with the FOMC minutes now out of the way, focus shifts towards the key US employment data due for release today and tomorrow.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101.28 (1h 50-SMA). A break above the last, the major could test 101.79/94 (5-DMA/ 1h 100-SMA). While to the downside, the immediate support is seen at 100.75 (Daily low) and below that at 100.50 (psychological levels).