USD/JPY back above 100-DMA, hits session high at 103.60

After an initial dip below 100-day SMA, the USD/JPY pair managed to recover its lost ground and is now building on to the recovery momentum.

Currently trading at session high around 103.60 region, the pair initially touched a session low level of 103.28 as weakness in equity markets supported the Japanese Yen's safe-haven appeal. Also on Tuesday, the pair once again faced rejection at 104.00 handle amid a sharp slide in the US equity markets that hindered the pair's momentum above 100-day SMA. 

On Wednesday, comments from BOJ’s Kuroda and Harada, showing central bank's willingness to ease further, attracted fresh bids and helped the pair to recover from session lows. The recovery, however, lacked momentum as persistent risk-off sentiment continues to underpin safe-haven bids for the Japanese Yen. 

Investors on Wednesday will remain focused on the release of minutes from the Fed's latest monetary policy meeting that would be looked upon for clues over the timing of next rate-hike action by the central bank.

Technical levels to watch

From current levels, 103.95-104.00 area might continue to act as immediate resistance above which the pair is likely to immediately dart towards 104.30 (Sept. monthly high) before eventually rising to 104.60 horizontal resistance.

On the flip side, 103.25-20 area seems to have emerged as immediate support, which if broken could drag the pair back below 103.00 handle towards testing 102.80 support area.