USD/JPY drops further to test 103.00, Kuroda still weighs

The USD/JPY pair erodes more-than 100-pips from post-NFP highs, and now looks to test 103 handle amid continued JPY buying, in wake of BOJ Governor Kuroda’s comments delivered in Asia this Monday.

USD/JPY eyes 103 handle

Having failed several attempts to hold above 104 handle, the USD/JPY pair keeps pushing lower, with the JPY bulls still cheering BOJ Kuroda’s comments, citing that there are limits to what BOJ can do at its Sept monetary policy review meeting.

Moreover, cautious trading seen in the European indices on back of mixed macro updates from the Euroland, also keeps the safe-haven bids for the JPY underpinned. At the time of writing, USD/JPY drops -0.60% to 103.27.

In the session ahead, the major will continue to track USD moves amid light trading, as the US markets are closed in observance of Labour Day. While the comments from BOJ’s Kuroda will also continue to influence the USD/JPY pair.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 103.56 (5-DMA). A break above the last, the major could test 104 (psychological levels). While to the downside, the immediate support is seen at 103.00 (round number) and below that at 102.83 (50-DMA).