USD/JPY sold-off at 100-DMA, back at 107.00

The bid tone around the US dollar weakened a bit as we head into mid-Asia, now sending USD/JPY further away from six-week peaks reached near the mid-point of 107 handle.

USD/JPY turns lower alongside Nikkei

The bulls took a breather from the latest leg higher and sent the USD/JPY pair back towards 107 handle, as markets take profits off the table after the rate ran into 107.50 resistance, where the 100-DMA intersects.

Moreover, stalled rebound in the Japanese stocks also pulled the major from multi-week highs of 107.49 levels. At the time of writing, the USD/JPY pair trades +0.22% higher at 107.09, while the Nikkei 225 index rallies +1% around 16,860 points.

In the day ahead, the broader market sentiment will continue to play a key role ahead of the ECB decision and a fresh batch of US macro releases due later in the NA session.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 107.49 (Multi-week highs/ 100-DMA). A break above the last, the major could test 107.78 (daily R2). While to the downside, the immediate support is seen at 106.33 (5-DMA) and below that at 105.39/38 (50 & 10-DMA).