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    USD/JPY falls sharply, testing bids near 101.00 Ivan Delgado

    USD/JPY has seen a sharp fall ahead of the Tokyo open, moving from 101.80 highs towards the 101.10 low, in what represents the lowest level printed since June 24th, when the UK voted to leave the European Union. Risk-off flows continue to dominate, with the Yen being the top performer under such environment.USD/JPY technical outlookTechnically, Matias Salord, Analyst and News Editor at FXStreet, notes that "a break under 101.40 would expose 101.00 first and then the psychological 100.00 level." Should we see a recovery of risk , Matias notes that "a rise back above 102.30/40 could gain support for a more pronounced recovery."Japanese intervention not to be ruled out as 100.00 nearsIt is worth noting that Japanese authorities are going to be paying close attention to Yen valuations in the coming days as the appreciation continues. Matias notes that "as price approaches 100.00, speculations about a potential intervention from Japanese authorities to curb yen's strength could impact on the pair and a direct intervention would have an even larger effect, but not clearly perdurable.

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