USD/JPY struggling for direction at 101.30, awaits fresh impetus

After seesawing between gains and losses, the USD/JPY pair finally seems to have stabilized to currently trade absolutely flat around 101.30 region.

During Asian session the pair dipped below 101.00 handle to hit session low level near 100.85 but managed to recover swiftly and jumped to day's peak near 101.67 before running into fresh offers, dragging the pair back to Wednesday's closing level. 

Despite of its recent slump, led by disappointment from BOJ and Japanese government fiscal stimulus announcement, the pair has struggled to register any meaningful recovery. The pair, however, has benefitted a bit from Wednesday' strong ADP report on US private sector employment and bullish bias in European equity markets. 

Further momentum, however, seems limited ahead of the much awaited BOE monetary policy decision, which has the potential to trigger a fresh bout of volatility in financial markets and eventually drive sentiment surrounding the traditional safe-haven currency, Yen. However, Friday's NFP data would be key determinant of pair's direction in the near-term. 

Technical levels to watch

On the immediate downside, 100.90-85 region remains immediate support to defend, below which the pair remains vulnerable to continue drifting lower immediately towards 100.00 psychological mark. Meanwhile on the upside, sustained strength above 101.50-60 immediate resistance now seems to assist the pair extend its recovery trend, initially towards 102.00 round figure mark and eventually towards 102.35 horizontal resistance.