USD/JPY stuck in a trading range around 102.00 level, awaits fresh impetus

Despite of a slight improvement in the global risk-appetite, the USD/JPY pair has failed to register even a slightest of recovery and continues trading a tad below 102.00 mark amid cautious trade.

The near-term downfall remained limited in anticipation of a possible intervention by the Japanese central bank. However, the pair continues to struggle as traders seem to position themselves cautiously in the aftermath of an unexpected outcome from last week's EU referendum in the UK. 

As focus remains on developments surrounding the Brexit referendum, traders now turn their attention to some key macro releases from the US. The final GDP print for the first quarter of 2016 and the Conference Board's Consumer Confidence index for June are scheduled for release from the US, later during NY trading session.

From technical perspective, the pair remained stuck within a 100-110-pips trading band between 102.50-101.40 and hence, it would be prudent to wait for break through the recent trading range before confirming the near-term direction for the pair.

Technical levels to watch

On the immediate downside, bulls would be looking to defend immediate support around 101.50-40 region, below which the weakness 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, 102.00-102.20 region now seems to have emerged as immediate resistance. Strong bullish momentum above this immediate resistance has the potential to boost the pair immediately towards 103.00 handle before heading towards 103.50 support break-point turned resistance.