USD/JPY dumped to 105.80 on BOJ’s reluctance to ease further

The sell-off in USD/JPY from multi-week tops picked-up pace in the European session, knocking-off the major almost 150-pips over the last hour.

USD/JPY: Yen back in demand on BOJ’s Kuroda

The dollar-yen pair witnessed aggressive selling post European open, as the JPY bulls fought back control after sources close to BOJ revealed some hesitation from the central bank to roll out further easing, despite the Brexit-led uncertainty.

The major came under fresh bearish pressure also after the BOJ Governor Kuroda poured cold water on the recent chatter surrounding helicopter money to be used, in case the central bank looks to ease further next week.

At the time of writing, the USD/JPY pair hovers at fresh session lows of 105.79, recording a –1.02% loss so far this session. Markets now shift their focus towards the highly-influential ECB decision; while a slew of US economic releases will be also reported later in the NA session.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 106.11 (5-DMA). A break above the last, the major could test 106.56 (daily pivot). While to the downside, the immediate support is seen at 105.36/27 (50 & 10-DMA) and below that at 105 (round figure).