USD/JPY slumps to 101.70 on JP stimulus disappointment

The sell-off in the USD/JPY pair extended post-European open, with the yen ruling the roost in a knee-jerk reaction to the Japanese stimulus announcement, which disappointed markets.

USD/JPY stops triggered below 102 levels

The yen witnessed fresh buying pressure in the European session, mainly triggered by rife disappointment after the Japanese government officially announced JPY 28 trln stimulus package before the cabinet approval this Tuesday.

Aggressive selling seen in the major can be also attributed to triggering of Stoploss following a breach of 102 handle, paving way for further downside towards post-Brexit lows at 99 handle.

Markets continue to digest a dozen of headlines crossing the wires from the Japanese officials ahead of BOJ Kuroda’s and Fin Min joint presser due later in the day. While the US docket offers the core PCE price index and personal spending data, which will be lined up for release later in the NA session.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 102.93/103 (5-DMA/ round number). A break above the last, the major could test 103.43 (daily R3). While to the downside, the immediate support is seen at 101.50 (psychological levels) and below that at 101 (round number).