USD/JPY: Yen extends gains as BOJ pauses ETF buying spree

The bulls tightened their grip on the Japanese yen in the last hour, knocking-off USD/JPY back below 101 handle amid BOJ’s ETF purchases headlines.

USD/JPY tests Thursday’s low

The Japanese yen extends control versus its American counterpart in the European session, driving the USD/JPY pair sharply lower in a bid to test Thursday’s lows struck at 100.84 levels, as the yen jumped after news hit the wires that the BOJ paused its regular ETF purchases today.

Moreover, fresh selling seen in the US dollar across the board, amid profit-taking ahead of the US jobs report also added to downside in the major. The USD index now drops -0.20% to 95.57.

At the time of writing, the USD/JPY pair trades -0.29% lower at 100.93, hovering within a striking distance of session lows struck at 100.87 last minutes.

Going forward, the US employment report will be eagerly eyed for fresh updates on the Fed’s rate decision and hence, for fresh direction on the greenback.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101.40 (5-DMA). A break above the last, the major could test 102 (round figure). While to the downside, the immediate support is seen at 100.84 (Aug 4 low) and below that at 100.65 (Aug 2 low).