USD/JPY now seems to find support around 102.00 level

Yen bulls seem to take a breather, with the USD/JPY pair now consolidating around 102.00-102.50 region after a whopping slide of around 800-pips from session high. 

As majority of the UK voters opted to leave the European Union, the Japanese Yen soared on global risk-aversion and safe-haven flows. The USD/JPY pair, however, managed to recover from lower levels on news of a possible FX intervention by the Japanese central bank to curb sharp Yen appreciation. 

Meanwhile, weaker-than-expected US Durable goods orders failed to provide any respite for the US Dollar against its Japanese counterpart. 

With uncertainty still prevailing over the economic and political consequences of the crucial UK-EU referendum, the major might continue to remain volatile and attract fresh selling pressure on any further adverse news surrounding the referendum.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet, notes, "The USD/JPY pair's recovery stalled around 103.00, and now trades around 102.50, having found a comfort zone between 102.00 and 103.00. The 61.8% retracement of the daily decline stands at 103.90, and seems unlikely the pair can reach that level today. But that's what it takes to confirm a steeper recovery. Below 101.90 on the other hand, the pair will likely resume its slide, with scope to end the day near the 100.00 figure."

"Support levels: 101.90 101.40 100.80"
"Resistance levels: 103.35 103.90 104.60"