USD/JPY consolidates the brief spike to 101.75

USD/JPY is seen consolidating the heavy gains witnessed during the Asian session, with the bulls surviving above 101.40 support line.

USD/JPY: Downside opening up below 101.40?

The dollar-yen pair is seen oscillating back and forth in a 10-pips narrow range over the last hour, having almost reversed a brief spike to 101.75, fresh weekly highs.

The Japanese yen recovered some losses against its American counterpart in the European session as investors digest latest comments from BOJ’s Kuroda, noting that the bank aims to achieve inflation at earliest date possible.

However, the retreat looks capped by persistent risk-on rally in the European markets, in light of the OPEC’s output limit agreement.  At the time of writing, USD/JPY trades +0.77% to 101.47, while the pan-European benchmark, the Euro Stoxx 50 rallies +1.20%.

The major eagerly awaits the US GDP report and a fresh bevy of Fed speakers due later on Thursday, for fresh incentives on the spot.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101.75 (weekly high). A break above the last, the major could test 102 (round figure) and 102.41 (Aug 29 high) beyond the last. While to the downside, the immediate support is seen at 100.95 (10-DMA), next at 100.76 (5-DMA) and below that at 100.50 (psychological levels).