USD/JPY retraces from high, still well bid above 103.00 handle

The USD/JPY pair was seen building on to its break-out momentum above 50-day SMA resistance and touched a fresh six-day high level of 103.35. 

The pair, however, has retraced few pips from session high and is currently trading around 103.15 region. Spot prices gained momentum on flash headlines on the upcoming BOJ monetary policy meeting that the central bank is ready to announce additional monetary easing. Meanwhile, disagreement over the best possible means of additional stimulus appears to have capped further upside for the major.

Moreover, mild improvement in global risk sentiment is also supportive of the pair's upward trajectory for the second straight session. 

Meanwhile, upbeat sentiment surrounding the greenback, on expectations of an eventual Fed rate-hike action by the end of this year, also seems to contribute towards maintaining strong bid tone around the USD/JPY pair.

Expectations over central bank monetary policy decisions (the Fed and BOJ) at their upcoming monetary policy meetings on Sept. 20-21 remains the sole driver and determinant of the pair's near-term trajectory. 

Technical levels to watch

On the downside, 50-day SMA resistance break point near 102.65 region now becomes immediate support, which if broken would negate possibilities of any further up-move and trigger a fresh leg of selling pressure and drag the pair back towards 102.00 handle.

Conversely, sustained momentum back above 103.30 level has the potential to continue boosting the pair further towards 104.00 handle ahead of its next resistance near 104.65-70 region.