USD/JPY struggling for a firm direction, stuck around 103.00 handle

The USD/JPY pair reversed from weekly bullish opening gap and has now dropped back to 103.00 handle, erasing all of its tepid recovery gains.

Donald Trump's improved performance during the second US presidential debate seems to have curbed investor risk-appetite. Moreover, a minor retracement in Asian equities is extending support to the Japanese Yen's safe-haven appeal and exerting some selling pressure around the major.

With markets already digesting Friday's disappointing headline NFP print, the pair witnessed a directionless trading action and would now take cues from the prevalent risk sentiment, amid thin liquidity conditions on the back of bank holiday in the US in observance of Columbus Day.

Technical levels to watch

On a sustained weakness below 102.85-80 support, the pair seems to immediately drift to 102.50 support below which the downslide could get extended towards 50-day SMA resistance break-point turned important support near 101.75-70 region.

On the upside, sustained move above 103.00 handle, and a subsequent strength above session high resistance near 103.20-25 area, is likely to boost the pair immediately towards 100-day SMA resistance near 103.55-60 region before the pair makes a fresh attempt towards reclaiming 104.00 handle.