USD/JPY turns flat at 101.30

Having posted a session high at 101.65 level, the USD/JPY pair failed to extend the momentum and has now reversed all of its early recovery gains to currently trade around 101.30 region. 

The prevalent risk-on sentiment initially helped the pair to continue with its upward trajectory for the fifth trading session. Moreover, the disappointing release of Tankan Manufacturing Index from Japan also contributed to the offered tone around the Japanese Yen. 

Further upside, however, was restricted amid renewed Brexit fears, which is seen extending some support to the safe-haven appeal of the Japanese Yen and restricted the pair below 50-day SMA immediate resistance. 

Looking ahead today's release of US ISM manufacturing PMI is likely to provide fresh impetus during NA trading session, while the prevalent risk sentiment would continue to be the key driver for the pair's next leg of move during European session. 

Technical levels to watch

Weakness below session low support near 101.20 level is likely to accelerate the slide immediately to 101.00 handle below which the pair is seems to head back towards 100.70 support en-route 100.30 important horizontal support.

On the flip side, 101.60 area now seems to have emerged as immediate resistance and is closely followed by 50-day SMA strong resistance near 101.75-80 region. A convincing strength above 50-day SMA resistance should now pave way for continuation of the pair's near-term recovery trend towards its next major resistance near 102.50-60 region in the near-term.