USD/JPY Holding Stable Around 107.00 Handle
Following a drop to 5-week low of 106.25 and a subsequent recovery back above 107.00 handle, the USD/JPY pair on Friday is holding stable around Thursday's closing level.
Having topped at 107.26 during early Asian session on Friday, the pair tested sub-107.00 level before finding its feet around 107.00 mark as investors remained cautious amid weakness in Asian equity markets.
Against the backdrop of a swift recovery for the US Dollar on Thursday and a follow through minor up-tick on Friday, risk-off sentiment remains the key driver capping recovery for the USD/JPY pair.
With both the US Federal Reserve and the Bank of Japan scheduled to announce their monetary policy decision on June 15 & 16 respectively, traders are likely to take directional bets only after passage of the big event risks.
Technical levels to watch
From current levels, below day's through level (106.90), the pair seems to drift back towards 106.50-45 support area. Break below 106.50 has the potential to continue dragging the pair even below Thursday's low of 106.25 and below 106.00 round figure mark, towards retesting early May low of 105.55.
Meanwhile on the up-side, 107.50-55 region, followed by weekly high near 107.90, seems to act as immediate resistance levels. A clear break through these resistance levels could boost the pair further towards 108.35-40 horizontal resistance area.