USD/JPY soars through 104.00 handle

The USD/JPY pair has managed to bounce back sharply from sub-103.00 level tested in the aftermath of disappointing headline NFP-print, and has now jumped to 104.00 handle, recovering over 120-pips from session low.

Immediately after the release of US monthly jobs report for August, the pair fell sharply to hit 2-day low level of 102.80, closer to 50-day SMA resistance break-point. The pair, however, attracted strong buying interest at lower levels, reaffirming a near-term break-out that might continue to boost the pair in the near-term.

Rising expectations of additional BOJ monetary stimulus has kept the Japanese currency under intense selling pressure across the board. Moreover, upbeat sentiment surrounding equity market is further denting the safe-haven appeal of Yen and providing an additional boost to the major. 

Technical levels to watch

The bullish momentum seems strong enough to lift the pair further towards 104.55-60 resistance area above which the pair is likely to continue trending higher beyond 105.00 psychological mark towards testing its next major resistance near 105.40 area. On the downside, 103.50-45 zone seems to protect immediate downside and 103.00 handle might now act as strong near-term support.