USD/JPY retraces from session peak, back below 101.00 handle

Having posted a session peak at 101.24, the USD/JPY pair has reversed some of its early gains and has now drifted back below 101.00 handle. 

Currently trading around 100.90-85 region, intervention rhetoric from various Japanese officials had helped the pair to defend 100.00 psychological mark on Thursday and continue with its pull-back from a 4-week low, touched in the aftermath of BOJ and Fed disappointment.

With the post-FOMC US Dollar sell-off subsiding, a broad based greenback recovery provided further assistance to the pair's recovery trend for the second consecutive day. However, cautious sentiment around equity markets attracted some fresh safe-haven flows towards the Japanese Yen and restricted the pair to build on to its recovery gains. 

In absence of any major market moving economic releases, the prevalent risk sentiment is likely to be the sole drive for the pair's move for rest of the trading session. 

Technical levels to watch

Retracement back below session low support near 100.70 might now attract some fresh selling pressure, which might take the pair back towards 100.35-30 support area. On a sustained weakness below 100.30 support, the pair might turn vulnerable to break below 100.00 mark and head towards testing August swing lows support near 99.60-55 region.

Meanwhile on the upside, renewed buying interest back above 101.00 handle, leading to a subsequent momentum through session high resistance near 101.25 region, the pair seems all set to erase all of its BOJ/FOMC-led losses and head towards testing its next major resistance near 101.80 level.