USD/JPY reverses a downward spike to 101.20, BOJ eyed

The yen picked-up strength last minutes amid increasing nervousness as the BOJ may announce its policy decision any minutes.

USD/JPY jumps back to 101.50

After a brief phase of consolidation, the USD/JPY pair broke sharply lower and tested almost two-week lows near 101.20 some minutes ago, before recovering some ground and returned to familiar range around 101.50 levels.

The BOJ policy verdict is eagerly awaited for fresh direction in the major, although risk remains to the downside as the central bank is widely expected to refrain from slashing rates further into the negative territory.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101.99 (5-DMA). A break above the last, the major could test 102.50/57 (psychological levels/ 20-DMA). While 2to the downside, the immediate support is seen at 101.18 (Sept 7 low) and below that at 101.00 (round figure).