USD/JPY – attempting gains above 102.00, pulls up Nikkei

Offered tone around Yen gathered pace, pushing the USD/JPY pair above 102.00 levels and helping Nikkei retake its daily losses.

Signs of risk-on in the markets

The rise in USD/JPY and Nikkei accompanied by a recovery in the treasury yields and a rise in S&P futures, which points to a moderate risk-on the markets. Still, caution persists as investors want to see a positive action in the UK markets before pushing other riskier assets higher.

Consequently, the pair is struggling to extend gains above 102.00 handle. The bird recovered from the low of 101.56 and clocked a high of 102.16 before trimming gains to trade around 102.00.

The recovery in the pair also helped Japanese equity index Nikkei trim losses to trade just 0.30% lower on the day.

USD/JPY Technical Levels

The immediate hurdle at 102.48 (previous day’s high) if breached could yield 103.00 and 103.34 (5-DMA) levels. On the other hand, a breakdown of support at 101.40 (previous day’s low) would open doors for a cut through 101.00 (zero figure) and a re-test of 100.71 (50% of 2011 low-2015 high).