USD/JPY recovers lost ground, attempting a break through 50-DMA

The USD/JPY pair managed to recover from early losses and has now turned positive to currently trade at a fresh session high, around 50-day SMA near 102.60 region. 

The pair continues to be driven by expectations of of further monetary easing by BOJ and prospects of a Fed rate-hike action in September. Hence, comments from Japanese PM economic adviser that BOJ should add further monetary easing at its September meeting triggered a fresh leg of up-move and helped the pair to extend its rebound from session low support near 102.00 handle.

Moreover, the greenback continues to gain traction across the board as traders now look forward to the FOMC Member Eric Rosengren's speech for fresh clues over the Federal Reserve's monetary policy outlook. 

Technical outlook

On a sustained move above 102.60 (50-day SMA), the pair seems to immediately dart towards 103.10-20 resistance above which the near-term bearish bias get negated and should boost the pair further towards 103.45-50 resistance en-route 104.00 round figure mark.

On the flip side, a fresh rejection from 50-day SMA resistance, and a subsequent drop below 102.00 handle support, might now turn the pair vulnerable to break through 101.70 support area and head towards weekly lows support near 101.20 level.