USD/JPY rises to fresh session highs as risk-on picks up pace

A sudden selling interest appears to have caught the Japanese yen, allowing further recovery in the USD/JPY pair towards daily tops reached at 102.78 in early Asia.

USD/JPY eyes 103 handle

The major caught a bid-wave last minutes and rallied to session highs of 102.62 as the safe-haven bids for the yen continues to get crushed as risk-on remains in full steam, restoring investors’ confidence in risky assets such as the equities, oil etc. At the time of writing, USD/JPY drops -0.19% to 102.57, having extended its recovery from 102.18 lows.

Meanwhile, amid a lack of fresh fundamental triggers so far this session, the market sentiment remains calm amid stabilizing European equities after the Brexit-led turmoil. In the day ahead, from the US data perspective, PCE price indices for May will be released later in the day, along with personal income and spending figures and pending home sales.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 102.78 (Daily high). A break above the last, the major could test 103.19 (post-Brexit high). While to the downside, the immediate support is seen at 101.88 (daily S1) and below that at 101 (round figure).