USD/JPY gyrates 50% Fibo levels as Nikkei struggles

USD/JPY pair is looking toppy, trading around 100.71, which is the 50% Fibo retracement of the move from 2011 low to 2015 high, thus leaving the Nikkei index moderately lower on the day.

Japan steps up intervention rhetoric

As per Bloomberg report, Japanese officials have stepped up the intervention rhetoric, however, markets no longer pay heed to such threats. Moreover, technical and fundamental factors are increasingly suggesting a break below psychological level of 100.00 is in the pipeline.

Meanwhile, Japanese stock markets are failing to respond positively to Thursday’s global market rally. At the time of writing, the index was down 0.20% on the day.

USD/JPY Technical Levels

Acceptance below 100.71 (50% Fibo) would open doors for 100.00 (psychological support) levels. On a larger scheme of things, a violation at 98.90 is largely seen blowing stops and thus could yield a quick fire drop to 97.00 levels.

On the higher side, 5-DMA of 101.08 is an immediate resistance, which if breached would expose 102.00-102.78 (Wednesday’s high). Only a daily close above 102.78 would force bears to unwind shorts leading to a quick rise to 104.32 (Sep 2 high).