USD/JPY trims losses, approaches 102.00

USD/JPY continued to recover ground during the American session and moved further away from weekly lows that reached earlier on Asian hours at 101.18. Recently the pair reached 101.84.

Greenback remains in negative territory for the day but now is closer to the level it closed on Tuesday rather than Wednesday’s low. The recovery of the pair took place despite the decline of US stocks. The Dow Jones was down 0.17% while the Nasdaq was falling 0.07%.

The yen lost strength across the board after the latest bullish run during the Asian session and now is showing some signals of exhaustion after a 2-day rally in the market.

Technical levels

Currently, it trades at 101.75, 25 pips below yesterday’s closing price. The pair traded momentarily below the 20-day simple moving average that stands at 101.50/55, but it managed to bounce back above. Below that line, support could be seen at 101.15/20 (daily low), 100.60 (Aug 02 low, Aug 24 & 25 high) and 100.00 (psychological).  On the flip side, resistance might lie at 101.90 (Sep 06 low), 102.40 ( (Aug 29 high) and 102.85 (Aug 31 low).