USD/JPY manages to defend 100.00 mark, rebounds to 100.40

Having dropped to the lowest level since August 26, the USD/JPY pair has managed to bounce off session low and is now trading in neutral territory around 100.35-40 band.

Wednesday's BOJ decision to leave its interest rates unchanged and adopt a new policy to target to keep 10-year bond yields near zero exerted intense selling pressure around the major. Adding to this, the Federal Reserve also left interest rates unchanged and amplified weakness around the greenback, dragging the pair a one-month low. 

Following overnight sharp slide, comments from Japanese Ministry of Finance (MOF) official, Asakawa, showing readiness to take necessary action in order to prevent speculative move in the Japanese Yen, extended some support on Thursday and helped the pair to defend 100.00 psychological mark for the time being. 

Traders on Thursday would confront the release of weekly jobless claims, existing home sales data and CB leading indicator from the US, later during NY trading session.

Technical levels to watch

Any recovery attempt is likely to confront a strong resistance near 100.80 area above which a bout of short-covering could lift the pair beyond 101.00 handle towards testing an important support break-point, now turned strong resistance, near 101.40-45 region.

Meanwhile on the downside, a decisive break below 100.00 handle support is likely to accelerate the slide immediately towards August monthly lows support near 99.55-50 area before the pair eventually drops to Brexit swing low near 99.00 round figure mark.