USD/JPY off-highs, but holds above 102 handle

The USD/JPY pair keeps the bid tone intact, although retreats from daily tops as risk-on rally in the European equities appear to cool-off a bit as Brexit once again takes centre-stage ahead of the EU Summit.

USD/JPY fails near daily R1 at 102.39

The latest leg higher in the dollar-yen pair lost steam near 102.35 region, with the prices now drifting lower towards 102 handle as markets turn cautious heading into the EU Brexit –Summit. Investors eagerly await the UK PM Cameron’s speech at the Summit, where he may try to explain the key reasons that led to such a fateful EU referendum outcome.

Moreover, the ongoing weakness in the US dollar against its major peers dragged the USD/JPY lower from higher levels. Besides the EU Summit, the US final GDP and consumer confidence data will be closely eyed for fresh impetus on the major.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 102.47/50 (Jun 27 high/ psychological levels). A break above the last, the major could test 103.19 (post-Brexit high). While to the downside, the immediate support is seen at 101.33 (daily S1) and below that at 101 (round figure).