USD/JPY eases to 103.50, ignores BOJ’s more easing calls

The USD/JPY pair keeps its recovery mode intact in the Asian morning amid a better risk universe, although eased-off daily, despite more dovish comments from BOJ officials.

USD/JPY meets supply at 113.65

Having found renewed bids near 5-DMA (103.32), the recovery in the spot gain further traction and rose as high as 113.65, before meeting fresh supply at the last and now eases slightly, with the safe-haven yen gaining some ground on a renewed bout of risk-aversion, after the Chinese central bank set the Yuan mid-point sharply lower.

Moreover, the Japanese currency ignored more easing calls from BOJ’s Kuroda and Harada, as both showed their willingness to ease further by slashing rates further into negative territory. Also, the yen finds some support from better-than expected Japanese core machinery orders data released earlier on the day.

Focus now shifts towards a string of speeches from the FOMC members, US JOLTS jobs opening data and FOMC minutes for fresh direction on the major.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 104.17 (multi-week highs). A break above the last, the major could test 104.50 (psychological levels) and 105.34 (July 29 high) beyond the last. While to the downside, the immediate support is seen at 103.18 (Oct 11 low), next at 103.00 (key support) and below that at 102.64 (daily S2).