USD/JPY: consolidating and struggles to break 102.00

USD/JPY is currently testing the upper boundaries of the 101 handle and is failing to break through 102.00 after the Federal Reserve speaker's rally at the end of last week.

"The US dollar's pre-weekend gains were extended in Asia, but ran out of steam in Europe.  The easing of the momentum may set the stage for a bout of profit-taking later today and tomorrow.  The implied odds of 42% chance of a September Fed hike may be pushed back by skeptical market participants," explained analysts at Brown Brothers Harriman. Now the attention turns to the data with US nonfarm payrolls at teh end of the week before markets look to a BoJ in play next month also. 

USD/JPY levels

Analysts at Scotiabank explained that USD/JPY rose strongly Friday and gains have extended modestly so far today. "Fibonacci retracements derived from the July/August move lower from 10750/98.50 places the initial retracement point at 102.60. Look for support on modest dips to 102 for now. Broader trends are negative, however, and USD gains may struggle to extend through 103/104 in the next few weeks."