USD/JPY jumps to test 101 on Abe’s stimulus news

The USD/JPY pair’s recovery from near 100.50 level gains further traction in the late-Asian trades, after the yen was smashed across the board on JP economic stimulus news.

USD/JPY re-takes 101 handle

The dollar-yen pair witnessed fresh buying interest last minutes, following the Nikkei headlines citing, Japan PM Abe is likely to order economic stimulus on July 12, which bolstered the Japanese stocks and triggered renewed risk-on wave across the markets. At the time of writing, USD/JPY jumps 0.38% near fresh session highs of 101, while the Nikkei 225 index rallies almost 4% at 15,700 levels.

Meanwhile, markets digest the latest JP headlines, with the major tracking the broader markets sentiment amid a data-quiet Asian session this Monday. Looking ahead, the US LMCI data and Fed official George’s speech will be closely eyed for further momentum.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101.25 (Jul 8 high). A break above the last, the major could test 101.69 (10-DMA). While to the downside, the immediate support is seen at 100.18 (Jul 6 low) and below that at 100.02 (Jul 8 low).