Back above 102.00, bearish risk diminished in the short term. The USD/JPY pair recovered above the 102.00 mark mid European morning, hovering near a daily high set at 102.34. There’s not much supporting dollar’s gains at the moment, but the strong decline in commodity related currencies, lead by renewed selling pressure within stocks.

The recovery has not been enough to put the pair into positive territory weekly basis, but the short term picture favors some further gains, as the price has extended above its 100 SMA, while indicators aim modestly higher within positive territory. Nevertheless, the 100 SMA remains horizontal, while the 200 SMA also lacks directional strength above the current price, indicating a limited buying interest.

In the 4 hours chart, the price is hovering around its moving averages, while indicators have been rejected from their mid-lines and remain below them, also suggesting that the ongoing recovery could be short lived.

Support levels: 102.10 101.50 101.10

Resistance levels: 102.50 102.90 103.40