USD/JPY holds sub-102.00 trading range, might turn vulnerable below 101.40

The Japanese currency continues to gain traction on global risk-off sentiment, with the USD/JPY pair remains well offered below 102.00 handle to currently trade around 30-pips off session low level of 101.40. 

Yen continue to be benefit from investors' flight to safety following Friday's unexpected outcome from the historic UK-EU referendum, where majority of the UK voters decided leave the European Union as against the recent polls suggesting that voters would reject a Brexit.

However, news (via Reuters) that the Japanese government might be considering to announce an additional stimulus package of 10 trillion Yens, might be capping a sharp appreciation for the Japanese currency and restricting a sharp slide for the USD/JPY pair.

In the meantime, developments / news / announcements surrounding the critical Breixt referendum might continue to grab headline and drive global risk-on / off sentiment, eventually affecting the USD/JPY pair.

Technical outlook

Slobodan Drvenica, Information & Analysis Manager at Windsor Brokers Ltd., notes, "Hourly lower platform at 102.45 marks initial resistance, ahead of recovery rejection at 103.23, which marks the first breakpoint."

"On the downside, break below 101.45 is expected to expose 101.60 (Fibo 61.8% of 98.98/103.23 recovery leg) and psychological 100.00 support, which guards last Friday’s low and lower breakpoint at 98.98."