USD/JPY bounces back towards 101, Kuroda underpins

A sudden downwards spike in the USD/JPY pair failed to close out the bullish opening gap, with the bulls snatching back control post-Tokyo open, sending the rate back towards 101 handle.

USD/JPY: Kuroda’s comments assessed

The dollar-yen pair snapped its recent run of losses and rebounded sharply higher this Monday, as the yen reacted negatively to BOJ Governor Kuroda’s comments delivered over the weekend, citing that there is still more room for monetary policy easing.  

The major witnessed a bullish gap at opening in reaction to Kuroda’s comments, with the yen longs being unwound at the start of a brand new week. Over the last hour, the bulls are seen back in control, and the spot gathers pace to take-out 101 handle amid a data-empty macro calendar today.

At the time of writing, the major trades +0.50% higher at 100.75, in another attempt to test fresh session highs reached at 100.81 earlier on the day.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101 (psychological levels). A break above the last, the major could test 101.26 (20-DMA). While to the downside, the immediate support is seen at 100.55 (daily pivot) and below that at 100.00 (round figure).