USD/JPY: Expectant of stimulus announcement, keeps 103.00

The USD/JPY pair retreated from weekly highs and now consolidates the upside above 103 handle as markets eagerly await economic stimulus announcement by the Japanese PM Abe.

USD/JPY remains below daily R1

The dollar-yen pair built onto yesterday’s gains and now remains well bid above 103 handle as the yen continues to tumble amid expectations of an additional fiscal stimulus package likely to be announced by Japan PM Abe today, as the ex-Fed Chief Bernanke and Abe’s meeting gets underway.

Markets are expecting Bernanke to assist the Japanese policymakers to unveil the new economic package in yet another effort to revive the Japanese economic growth. Moreover, yesterday’s confirmation by Abe to order economic stimulus on July 12, also continues to push the yen in the red. At the time of writing, USD/JPY jumps 0.26% to 103.08, having moved-off weekly highs reached at 103.29 earlier on the day.

Meanwhile, markets also look forward to the US JOLTS job opening data and a couple of speeches from the FOMC members Tarullo and Bullard for further cues on the major.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 103.41/42 (Jul 1 high/ daily R2). A break above the last, the major could test 104 (round number). While to the downside, the immediate support is seen at 102.64 (20-DMA) and below that at 101.99/82 (daily pivot/ 10-DMA).