USD/JPY fades a spike to 100.70 as Nikkei moves-off highs

The recovery attempt from below 100 barrier stalled near 100.70 last hour, now pushing USD/JPY slightly lower towards the mid-point of 100 handle.

USD/JPY rallied on Japan’s Asakawa

The dollar-yen pair finally ended the overnight downside consolidation box and broke higher after comments from the Japanese ministry of finance official, Asakawa, crossed the wires, in a jaw-boning attempt after the yen rallied sharply to fresh 2-month highs and breached 100 – psychological levels against the greenback.

However, the major failed to sustain at higher and drifted lower, as the Japanese stocks stalled rebound and moved-off lows. At the time of writing, USD/JPY rises +0.18% to 100.48, easing-off 100.68 highs, while the Nikkei 225 index trades +0.56% higher and recedes below 17k mark.

Meanwhile, markets digest the recent mixed US macro data and hawkish Fed speaks ahead of the FOMC meeting minutes release due later in the American afternoon.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 100.92/101 (5-DMA/ round number). A break above the last, the major could test 101.23/42 (daily S1/ 10-DMA). While to the downside, the immediate support is seen at 100 (key support) and below that at 99.55 (2-month lows).