USD/JPY sinks to lows near 102.00

The Japanese currency is now picking up pace vs. its American peer, sending USD/JPY to test lows in the 102.00 neighbourhood.

USD/JPY gains capped near 102.70

The pair is currently snapping a 2-day positive streak, coming down to challenge the 102.00 area after climbing as high as the 102.80 region on Monday.

Adding to the downside, the recent rally in USD seems to have run out of legs so far today, with the US Dollar Index struggling to extend the upside further north of 96.50.

In the US data sphere, IBD/TIPP’s Economic Optimism index is due later along with Unit Labor Costs and Non-farm Productivity during Q2.

USD/JPY levels to consider

As of writing the pair is retreating 0.24% at 102.20 facing the immediate support at 100.65 (low Aug.2) ahead of 100.02 (low Jul.8) and then 99.08 (low Jun.24). On the other hand, a surpass of 102.83 (high Aug.2) would open the door to 103.28 (50% Fibo of 99.08-107.48) and finally 104.05 (20-day sma).