USD/JPY attacks 102 handle as Nikkei hits session lows

The bid tone behind the Japanese yen gather steam over the last hours, drowning the USD/JPY pair to fresh two-day lows just ahead of 102 handle.

USD/JPY slips below all major DMAs

The demand for yen is on the rise so far this session, with the risk-off moods intensifying amid aggressive selling seen on the Japanese stocks, which weighs heavily on the USD/JPY pair. At the time of writing, USD/JPY slumps -0.29% to 102.14, hovering close to session lows reached at 102.09, while the Nikkei 225 index tanks -1.30% to daily lows just ahead of 16,400 mark.

The major eroded almost 130 pips over the last two trading sessions as the yen bulls fought back control on tumbling global yields , despite ongoing chatter that BOJ may resort to further easing at its monetary policy review meeting next week.

Meanwhile, the major will continue to track the broader market sentiment ahead of the release of crucial economic data from the US docket, which includes the retail sales and industrial output figures. Also, the BOE decision will be closely eyed for any impact on the USD moves.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 102.40/43 (20 & 50-DMA). A break above the last, the major could test 102.67 (daily pivot). While to the downside, the immediate support is seen at 101.54/40 (Sept 12 & 13 low) and below that at 101.18 (multi-week lows).