USD/JPY eases to 102.40 as risk-aversion deepens

The USD/JPY pair failed once again near 103 handle and retreated sharply thereon, now reverting towards daily lows amid renewed risk-off trades.

USD/JPY capped below 5-DMA at 102.91

The dollar-yen pair reverses a spike to 102.83 – session highs as the yen regained lost footing across the board after a fresh bout of risk-aversion hit the markets, which sent the Japanese stocks deeper in the red.

Moreover, the pair also came under fresh selling pressure after the greenback stalled its tepid-recovery and turned negative versus its major peers in light of recent dismal US fundamentals. At the time of writing, USD/JPY retraces to 102.45, modestly flat on the day, while the Nikkei 225 index drops nearly 1% to 16,485 levels.

Looking ahead, the major will continue to track the broader market sentiment ahead of the US core PCE price index and personal spending data due later in the NA session.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 102.91/103 (5-DMA/ round number). A break above the last, the major could test 103.43 (daily R3). While to the downside, the immediate support is seen at 102.35 (daily pivot) and below that at 102 (round number).