USD/JPY inching closer to 100.00 psychological mark

Just when markets seemed to stabilize a bit the USD/JPY pair caught-up with fresh selling pressure, dragging the pair to hit a fresh session low and inch closer to the very important 100.00 psychological mark. 

The pair remained well offered and is showing resilience even for a tepid technical bounce despite of its sharp slide of around 300-pips from last week's high level of 103.40 as traders continue to pile on to safe-haven assets - like gold, treasuries and Yen, amid Brexit-led global uncertain environment. 

Intense selling pressure across global equity market continues to boost the demand for traditional safe-haven currency, the Japanese Yen.

Adding to this, investors now remained skeptic over possibilities of any further Fed rate-hike before the first quarter of 2017 and expect the same to be confirmed from the release of FOMC meeting minutes, later during NY trading session. Diminishing prospects of an imminent Fed rate-hike is weighing on the US Dollar against its Japanese counterpart. 

Technical level to watch

On the immediate downside, bulls would be eying 100.00 psychological mark to extend some support, below which the pair seems to drift back towards retesting Brexit-led swing lows support near 99.00 handle. On the flip side, any attempts of recovery beyond 101.00 now seems to be capped at an important support break-point, now turned strong resistance, near 101.40-50 zone.