USD/JPY meets fresh supply once again near 103.65

The USD/JPY pair ran through fresh offers once again near 103.65 region, knocking-off the rate back below the mid-point of 103 handle, as the bulls await fresh incentive for the next push higher.

USD/JPY: 104 handle still on sight?

The bulls appear to face exhaustion as we head into mid-Asia, driving the USD/JPY pair back into the red zone, although still manage to hold well above 103 handle. USD/JPY is last seen exchanging hands around 103.45 levels, down -0.07% on the day.

The spot is consolidating its rally to monthly highs, mainly driven by a string of upbeat US fundamentals, which bolstered the case for a Dec Fed rate hike. Although the main risk event for the major, US payrolls data, is due out on Friday, which will confirm if the Fed remains on track to raise rates this year.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 103.66 (4-week tops). A break above the last, the major could test 103.89 (daily R1) and 104.14 (Sept 4 high) beyond the last. While to the downside, the immediate support is seen at 103.00 (round figure), next at 102.68/60 (100-DMA/ 5-DMA) and below that at 102.25 (daily S2).