USD/JPY pares gains, reverts to 102 handle

Despite persisting risk-on market profile, the JPY bulls managed to regain footing in the Asian trades, sending USD/JPY back below 102 handle.

USD/JPY testing 5-DMA at 101.90

The US dollar failed to sustain the recovery mode and turned lower during early Asian hours, now pushing USD/JPY below 102 handle. However, the sentiment around the major remains underpinned amid positive Asian equities and higher oil prices.

The spot came under fresh selling pressure after a string of downbeat Chinese economic releases briefly triggered a renewed bout of risk-aversion across the board, lifting the safe-haven bids for the Japanese currency.

Next of note for the major remains the US macro data, which will remain the main drivers today. In the meantime, persisting risk trends will continue to influence the major.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 102.34 (daily R1). A break above the last, the major could test 102.50 (psychological levels). While to the downside, the immediate support is seen at 101.67 (10-DMA) and below that at 101.28 (daily S1).