USD/JPY continues to struggle around 101.00 handle

The USD/JPY pair remained confined within a narrow trading band, just around 101.00 handle as markets await for fresh impetus from today's NFP release. 

Despite of its last week's BoJ-led sharp slide and subsequent break-down on disappointment from Japanese government fiscal stimulus announcement, the pair has failed to register any meaningful recovery from lower levels. 

However, for the time being bears seem to take a breather ahead of the most keenly watched and one of the most influential market moving releases from the US, monthly jobs report (NFP) later during NA trading session. 

The report is expected to show addition of 180k new jobs in the US economy during the month of July and the unemployment rate is expected to tick-lower to 4.8%. A surprisingly strong number would now provide the much needed respite for the USD/JPY bulls and assist the pair to bounce off 3-week low levels.

Technical levels to watch

On the downside, 100.70 region (weekly low) remains immediate support to defend, which if broken decisively should drag the pair immediately towards 100.00 important psychological mark. Below 100.00 support, the downfall could further get extended towards Brexit-led swing lows support near 99.00 round figure mark.

Meanwhile, any recovery attempt might continue to face immediate resistance near 101.50-60 region, above which the pair seems to reclaim 102.00 handle before heading towards its next major resistance near 102.45-50 region.