USD/JPY within range near 103.40

USD/JPY is sharply lower at the beginning of the week, coming down to test the 103.40/30 band, or session lows.

USD/JPY lower on USD selling

The greenback is surrendering part of last Friday’s gains to the 104.30 area following US Payrolls, currently giving away around a cent and navigating daily lows near 103.30.

On the other side, JPY remained indifferent after Governor H.Kuroda left the door open for further easing at the BoJ meeting later in the month, noting the prevailing scepticism amongst traders on the ability of the central bank to tackle deflation.

According to the latest CFTC report, speculative JPY net longs have reached the highest level since later April during the week ended on August 30, with Open Interest keeping the range.

USD/JPY levels to consider

As of writing the pair is retreating 0.53% at 103.36 facing the immediate support at 102.82 (55-day sma) ahead of 101.46 (20-day sma) and finally 99.53 (low Aug.16). On the flip side, a surpass of 104.33 (high Sep.2) would open the door to 104.44 (38.2% Fibo of the July-August down move) and then 105.28 (100-day sma).