USD/JPY rejection from 50-DMA finds support near 102.00 handle

The USD/JPY pair failed to build on to Thursday's sharp recovery and faced rejection at 50-day SMA immediate strong resistance near 102.60. 

Currently trading around 102.20 region, the pair revered part of Wednesday's recovery gains and tipped below 102.00 handle on reports of a nuclear test conducted by North Korea, which supported the safe-haven demand for the Japanese Yen. 

Moreover, a broadly weaker greenback also failed to extend any support and restrict the pair's reversal from an important resistance area. 

The pair, however, has managed to hold 102.00 handle as markets now look forward to speech from Federal Reserve Bank of Boston President Eric Rosengren later today that could provide some guidance to the Fed's monetary policy outlook and infuse a fresh bout of volatility.

Technical levels to watch

A follow through selling pressure below 102.00 handle, the pair seems to drift back towards 101.70 support below which the slide could get extended towards weekly low support near 101.20 level. On the flip side, 50-day SMA near 102.60 remains immediate strong resistance, which if conquered seems to boost the pair beyond 103.00 handle towards 103.20 resistance en-route its next major resistance near 103.50 region.