USD/JPY slumps to fresh 5-week lows near 100.50

The Japanese currency resumes its bullish run in the Asian trades this Tuesday, after a temporary reversal seen a day before, and now knocks-off USD/JPY to fresh five-week lows below 101 handle.

USD/JPY trades below all major DMAs

After witnessing a minor relief rally on Monday, the USD/JPY pair fell back into the red zone today, on the back aggressive yen buying across the board as a fresh bout of risk-aversion gripped the markets amid negative equities and oil prices.

The latest leg lower in the major can be solely attributed to fresh USD sell-off against its major peers, dragging the USD index -0.15% lower at fresh two-day lows of 95.44 points.

At the time of writing, USD/JPY drops -0.66% to 100.59, within a striking distance of fresh multi-week lows reached at 100.53, while the Nikkei 225 index loses -0.25% to trade around 16,830 levels.

All eyes remain on the US CPI report due later in the NA session, with markets expecting the consumer prices to have eased a bit in July.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101 (round number). A break above the last, the major could test 101.28 (5-DMA). While to the downside, the immediate support is seen at 100.29 (daily S3) and below that at 100 (psychological levels).