USD/JPY inching closer to 101.00 level

The USD/JPY pair maintained its bid tone and is now building on to its weekly bullish gap opening and is currently trading at session high, inching closer to 101.00 handle. 

A broad based US Dollar recovery, which started towards the end of last week, accompanied with comments from BoJ governor Koruda that there is room for additional rate-cut is supporting the major's recovery on Monday. 

However, the up-move seems to be restricted by the prevalent cautious sentiment around Asian equity markets. 

An empty economic calendar on Monday lacks any fresh fundamental triggers but the pair is likely to derive its move from prevalent risk sentiment and broader demand around the greenback ahead of this week's key event risk, the Fed Chair Janet Yellen's speech at the Jackson Hole Symposium.

Technical levels to watch

From current levels, 101.20 level seems to act as immediate resistance above which the recovery trend could get extended towards 101.95-102.00 handle. On the flip side, 100.50 now seems to protect immediate downside, which if broken might negate expectations of further recovery and drag the pair back below 100.00 psychological mark.