USD/JPY bounces off session low, still below 102.00 handle

The USD/JPY pair remained well offered below 50-day SMA and dropped to a session low level near 101.70 region before retracing few pips to currently trade just below 102.00 handle. 

A sell-off in global equity markets is boosting demand for the perceived safety of Japanese Yen and exerting selling pressure around the major. The pair remained under selling pressure despite of rising prospects of an imminent Fed rate-hike action at its September meeting.

Today's speech from FOMC member Lael Brainard would be the next big trigger that would drive the pair further from current levels, while also taking cues from the prevalent risk sentiment surrounding equity markets. 

Technical levels to watch

From current levels 101.75-70 area remains immediate support to watch for, which if broken has the potential to drag the pair back towards last week's low support near 101.20 level. On the flip side, sustained recovery momentum back 102.00-10 area might continue to confront strong resistance at 50-day SMA near 102.65-70 region above which the pair seems to extend last week's recovery momentum and surpass 103.00 handle towards testing its next major resistance near 103.30 level.