USD/JPY slides further below 102.00 as risk-aversion kicks-in

A fresh bout of safe-haven flows seems to boost demand for the Japanese currency, with the USD/JPY pair now extending its slide further below 102.00 handle to currently trade near session low level.

Following an unexpected outcome from the historic Brexit referendum on Friday, Yen has been benefitted from safe-haven flows. Monday's move was triggered by increasing flight to safety after an unexpected move from the Chinese central bank to devalue its domestic currency and fix USD/CNY rates at the highest levels since Jan 2011.

Adding to it, diminishing expectations of an imminent Fed rate-hike during 2016 also seems to be weighing on the USD/JPY pair. 

Moving ahead, developments surrounding the Brexit referendum would continue to drive investor sentiment and derive demand for the perceived safety of the Japanese currency, eventually assisting investors to determine further direction for the USD/JPY pair.

Technical levels to watch

On the immediate downside, traders will be closely watching for weakness below 101.50, which is likely to get extended immediately towards 101.00 handle. A decisive break below 101.00 round figure mark would bring 100.00 psychological mark support back on cards. 

Meanwhile on the upside, 102.00 region now seems to have emerged as immediate resistance. Strong bullish momentum above 102.00-102.20 immediate resistance now seems to boost the pair initially towards 103.00 handle before heading towards 103.50 support break-point turned resistance.