USD/JPY bounces-off 100.00, back at 5-DMA

The bid tone behind the Japanese yen eased a bit post-China open, allowing a tepid bounce in the USD/JPY pair back near 5-DMA at 100.25.

USD/JPY: 10-DMA on sight?

Despite a modest recovery staged by the dollar-yen pair from ahead of 100 handle, the bulls are seen struggling to regain control amid fresh selling interest seen behind the oil prices, which adds to the persisting cautious environment in the markets.

Moreover, the latest story carried by the Japanese press, the Nikkei, also back the case for the ongoing recovery mode witnessed in the JPY across the board. The Nikkei cited that, “Growing market speculation that the Japanese government will not intervene in the currency market any time soon is threatening to remove what little downward pressure still remains on the yen.”

Calendar-wise, we had the Japanese flash manufacturing PMI release, with the figures bettering expectations (49.6 actual versus 49.3 expected). Next in focus remains the US manufacturing PMI and housing data due later in the NA session.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 100.49/57 (daily pivot/ 10-DMA). A break above the last, the major could test 101 (psychological levels). While to the downside, the immediate support is seen at 100.05 (daily low) and below that at 99.74 (daily S2).