USD/JPY just manages to hold 100.00 psychological mark

The Japanese currency maintained its bid tone against its US counterpart, with the USD/JPY pair just managing to hold its neck above 100.00 psychological mark. 

Following Monday’s bullish gap-up reaction to comments from the Fed vice chair Stanley Fischer on Sunday, the US Dollar reversed all of its gains and traded lower for second consecutive day as fading expectations of an eventual Fed rate-hike continues to weigh on the major. Hence, bulls would be keenly awaiting the Fed chairwoman Yellen's address at the Jackson Hole symposium later this week for fresh cues over possibilities of any Fed rate-hike action in 2016. 

The pair has even failed to gain any respite from dovish comments from BoJ Governor Haruhiko Kuroda showing central bank's readiness to ease further and cut interest-rates deeper into negative territory. Moreover, buoyant sentiment surrounding equity markets has also failed to extend any support to the pair. 

Next in focus will be new home sales data and Richmond Manufacturing Index from the US, scheduled for release later during NY trading session. 

Technical levels to watch

On a sustained weakness below 100.00 psychological mark, the pair seems to immediately dart towards 99.65-55 support (previous week lows) before heading towards Brexit swing lows support near 99.00 round figure mark.

On the flip side, any recovery attempt beyond 100.20 immediate resistance might continue to confront strong resistance near 100.80 region, above which the recovery momentum is likely to get extended towards 101.20 en-rout 101.95-102.00 strong resistance.