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USD/JPY recovers to 101, profit-taking on BOJ verbal intervention? Dhwani Mehta

The safe-haven flows for the Japanese yen remains intact amid a classic risk-off environment, reinforced by renewed concerns over Brexit after effects. However, USD/JPY is seen attempting a recovery towards 101 handle as markets speculate about BOJ verbal intervention.USD/JPY heading towards multi-year troughs?The dollar-yen pair extends sell-off for the third straight session and trades at weekly lows on 100 handle as increased uncertainty over the Brexit triggered a fresh wave of risk-aversion across the financial markets and thus, boosted the bids for the safe-haven yen.However, over the last hour, the recovery in the USD/JPY pair appears to pick-up some pace on the back of profit-taking amid talks of BOJ verbal intervention. At the time of writing, USD/JPY drops -0.81% to 100.96, moving away from fresh one-week lows struck at 100.59..Moreover, the latest leg lower in the major can be attributed to a round of fresh selling in the Japanese stocks, with the Nikkei sinking -2.80% to 15,200 points. Markets now look forward to the US datasets and Fed speaks ahead of the FOMC minutes for fresh momentum on the major, while risk conditions will continue to play a key role.USD/JPY Technical levels to watchIn terms of technicals , the immediate resistance is located at 101.28 (daily high). A break above the last, the major could test 101.88 (5-DMA). While to the downside, the immediate support is seen at 100.50 (psychological levels) and below that at 100 (round figure).



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