USD/JPY: Upside remains capped at 103.20, awaits NFP

The USD/JPY pair is seen moving and forth in a 40-pips narrow range in the Asian trades so far, with the JPY fighting hard to regain control amid heavy selling seen in the Japanese stocks.

USD/JPY manages to regain 103 handle

Amid a cautious tone prevalent in the markets, the US dollar is seen struggling to extend its recovery on 103 handle versus the yen, as markets remain wary heading into the much-awaited US payrolls data and next week’s US elections.  

However, the gains seem limited as steep losses in the Japanese stocks underpin the safe-haven flows for the yen, keeping USD/JPY in check. The major is last seen exchanging hand around 103.50, up +0.08% on the day. While Japan’s Nikkei 22 index drops -1.72% to 16,840 points.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 103.44 (daily R1). A break above the last, the major could test 103.67 (5-DMA) and 104.03 (20-DMA) beyond the last. While to the downside, the immediate support is seen at 102.85/83 (100-DMA/ daily low) next at 102.54 (multi-week lows) and below that at 102 (round number).