USD/JPY trims gains, focus on Deutsche Bank and Brexit

USD/JPY retreated to daily pivot level of 101.27 as buying interest remains low on return of Brexit and Deutsche Bank uncertainty.

Rejected at 101.63

The spot clocked a high of 101.63 before deflating to near 101.30 levels. Deutsche Bank is not out of the woods yet, given neither the bank nor has the US Department of Justice confirmed the downsizing of the penalty from $14 billion to $5.4 billion.

Furthermore, UK PM May said the article 50 would be triggered by March 2017. Though this erases some amount of uncertainty, the gap down open in GBP/USD suggests safe haven flows could enter Yen. Later in the day, the US ISM manufacturing release could influence the pair.

USD/JPY Technical Levels

The immediate resistance at 101.76 (50-DMA) if breached would expose 102.00 (zero figure), above the major resistance at 102.78 (Sep 21) could be put to test. On the lower side, breach of 101.18 (session low) could see the pair test 5-DMA support of 100.95. A violation there would expose 100.71 (50% of 2011 low – 2015 high).