USD/JPY reverses a freak spike to 101.78

The USD/JPY pair experienced wild swing to the upside, having finally broken higher from a brief phase of consolidation near 101 handle.

USD/JPY rebounds sharply as Yen gets hit

The Japanese yen witnessed aggressive selling last minutes, sending the USD/JPY pair almost 80-pips higher towards yesterday’s highs, before meeting fresh supply at 101.78 to now trade around    101.50 levels.

Markets see no catalyst behind the freak spike seen in USD/JPY a few minutes ago, while the bulls having found strong support near the confluence of 5 & 10-DMA around 100.85/80. Meanwhile, the Japanese markets keep the red, as the Nikkei 225 index dives -1.55% amid risk-aversion.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 101.84 (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 100.84 (NY low), next at 100.70 (5-DMA) and below that at 100.50 (psychological levels).