USD/JPY attempts a tepid recovery, back above 101.00

After an initial slide to 100.60 region led by safe-haven flows, the USD/JPY major has managed to pare some of its losses and has now moved back above 101.00 handle to currently trade around 101.10-15 band. 

The pair extended its reversal from last week's high level of 103.40 and weakened for fourth consecutive day as uncertainty surrounding the historic Brexit referendum continues to drive investors towards traditional safe-haven currency, Yen. 

The pair, however, has managed to recover from lower levels as traders remained varied over the possible BOJ intervention in case of sharp appreciation of the Japanese currency. 

Moreover, short-term traders might also be inclined to take some profits off the table as we head towards the release of FOMC meeting minutes, which could provide some respite for the US Dollar against its Japanese counterpart, ahead of the ISM non-manufacturing PMI data, later during NY trading session. The key highlight of the week would be the NFP report, due on Friday.

Technical levels to watch

From current levels, any further recovery now seems to confront resistance near 101.50-55 region, which if cleared seems to assist the pair back towards 102.00 handle. Meanwhile on the downside, renewed selling pressure below session through support near 100.60-50 area seems to drag the pair immediately towards 100.00 psychological mark support, below which the pair is more likely to head back towards Brexit-led swing lows support near 99.00 round figure mark.