USD/JPY attempts recovery from monthly lows amid thin markets

The USD/JPY pair stalled its downward spiral over the last hour, attempting a tepid-bounce from post-FOMC lows struck just ahead of 100 mark.

USD/JPY: Will the recovery sustain?

The US dollar is seen recovering a part of heavy losses seen following the announcement of the FOMC decision, prompting the USD/JPY pair to move away from four-week troughs reached at 100.10 in the last hour. At the time of writing the major trades modestly flat at 100.32, now looking to regain 100.50.

The major came under intense selling pressure on the back of aggressive selling in the greenback across the board, after the Fed left the rates unchanged and adopted a more cautious approach in wake of persisting slack in the labor markets and lower price pressures.

Later today, markets will continue to assess the BOJ and Fed policy outcomes ahead of the US datasets, while volumes are likely to be low as the Japanese markets are off on a national holiday.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 100.76 (1h 20-SMA). A break above the last, the major could test 101.33 (5-DMA). While to the downside, the immediate support is seen at 100.00 (four-week lows) and below that at 99.53 (mid-Aug lows).