USD/JPY off-lows, back above 101.00 handle

After failing to build on to its tepid recovery gains to 101.45, the USD/JPY pair dropped to session low before once again finding support around 100.80-90 region. The pair has now managed to retrace few pips from session low and is currently trading back above 101.00 handle, around 101.10 region.

The greenback came under renewed selling pressure on fading expectations of an eventual Fed rate hike action in 2016.  However, further selling pressure was limited amid thin trading conditions ahead of this week's key even risk, FOMC meeting minutes, which would provide an insight over the central bank's outlook of the economy and eventually drive the greenback in the near-term.

How strong has the move been?

USD/JPY spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bearish. RSI is in neutral territory at 36.80, up from it’s last hourly close at 34.94, while ADX is trending above 30 at 45.26, up from 26.74 at the last hourly close.

Looking to a daily chart, we see that RSI is neutral at 40.18. The 200 SMA is currently at 101.55, down from 101.57 at the last period close, and declining on the hourly USD/JPY chart. Moving with a downward trend, the exponential average closing price is 102.75.

Price levels to be considered

Immediate resistance is pegged at 101.25 (Weekly Low), 101.29 (Hourly 20 EMA), 101.46 (Daily Classic PP) and 101.48 (Daily High). Next support to the downside can be found at 100.90 (Monthly Low), 100.87 (Daily Low), 100.83 (Yesterday's Low), 100.62 (Daily Classic S1) and 100.53 (Annual Low).