USD/JPY deflates below 101.00, FOMC eyed

After clinching daily highs near 101.20 in overnight trade, USD/JPY has now eased back below the 101.00 handle.

USD/JPY attention to FOMC minutes

Spot has recovered the 101.00 handle in early trade bolstered by the renewed buying interest surrounding the greenback, at the same time recovering part of yesterday’s retracement to fresh 2-month lows in the mid-99.00s.

Later in the NA session, USD will take centre stage in light of the release of the FOMC minutes. Market consensus remains tilted towards a dovish tone from the Committee, adding to the ongoing cautious stance.

USD/JPY levels to consider

As of writing the pair is advancing 0.45% at 100.75 facing the immediate resistance at 102.69 (20-day sma) followed by 102.83 (high Aug.2) and finally 103.28 (50% Fibo of 99.08-107.48). On the other hand, a breach of 99.53 (low Aug.16) would open the door to 99.08 (low Jun.24) and then 96.55 (low Oct.8 2013).