USD/JPY declines remain limited as buyers step into defend 100.00

FXstreet.com (Barcelona) - The US/JPY finished the session moderately lower, at one point trading as low as 100.67 but again finding support near the previous day lows to finish down 86 pips at 101.12

It will be most likely be a fairly quiet evening with the US and UK closed for holiday, but we will see the BoJ minutes released at 23:50GMT. Given the recent volatility in the Nikkei and JGB markets, market participants should keep a close focus on the details presented in the release. The pair is quiet in early Asia trade, currently changing hands at 101.20. Initial support sits at 100.74 (the 20dma), while first resistance is at 102.19

According to Sean Lee of FXWW, “the early interbank market was quiet today which means there are no major stop-loss levels close by. USD/JPY will remain the main intraday focus and will be very sensitive to moves on the Nikkei. Dealers say that there are large trailing stops on the downside from positions built up over the last few months so the immediate risk would still seem to lie to the downside.”