USD/JPY fails to build on Tuesday’s recovery, turns lower at 102.30

Tuesday's attempted recovery to the vicinity of 103.00 seems to have fizzled despite of easing risk aversion, with the USD/JPY pair dropping back to the weekly trading range to currently trade near 102.30 level.

On Tuesday, the US Dollar got a respite from better-than-expected final print of Q1 GDP growth rate and Consumer Confidence index that rose to its highest level since Jan. The recovery, however, failed to gain further traction as traders continue to position themselves cautiously amid the prevalent political and economic uncertainty surrounding last week's historic Brexit referendum.

Adding to this, disappointing Japanese monthly retail sales data did little to boost demand for the USD/JPY pair as investors now turn their focus to the Federal Reserve's preferred inflation gauge, PCE Price Index, and personal spending data, scheduled for release later during NA trading session.

Technical levels to watch

A follow through selling pressure below 102.00 round figure mark seems to drag the pair back towards 101.50-40 support area, below which the pair gets exposed to 101.00 mark before heading back towards retesting the very important psychological mark support around 100.00 region. Meanwhile on the upside, momentum above Tuesday's high resistance near 102.85 level now seems to boost the pair beyond 103.00 level, towards an important support break-point, now turned resistance, near 103.50 area.