USD/JPY: Bears take a breather, selling stalls near 108.50

The bears took a breather from the ongoing downward spiral, allowing a minor recovery in USD/JPY from session lows just near the mid-point of 108 handle.

USD/JPY re-attempts 109 handle?

The dollar-yen pair stages a minor-pullback in the European session, having found renewed bids just ahead of 108.50 levels, as the yen buying paused for a while amid stabilizing European equities as well as oil prices. At the moment, the USD/JPY pair recovers to 108.70, still down -0.57% on the day.

Looking ahead, the prevalent risk-off/on sentiment is likely to dominate the USD/JPY moves, in absence of significant US economic releases due later today.

USD/JPY Technical levels to watch

In terms of technicals, the immediate resistance is located at 109 (round number). A break above the last, the major could test 109.50 (post-BOJ highs). While to the downside, the immediate support is seen at 108.50 (psychological levels) and below that at 108.13/107.97 (5-DMA/ 1h 100-SMA).