USD/JPY consolidating at 102.00 after yesterday’s rebound

After an initial dip, the USD/JPY pair managed to recover its lost ground but remained confined in a narrow range and is currently hovering around 102.00 handle. 

The prevalent risk-on sentiment surrounding Asian equity markets is helping the pair to hold on to its Wednesday's recovery gains led by mostly in-line with expected weekly jobless claims data, which continues to point towards the underlying strength in the US labor market recovery. 

However, markets remained unconvinced that the Fed would still consider raising interest rates in 2016. Hence, today's economic releases from the US - monthly retail sales, PPI and consumer sentiment index would assist investors to evaluate the possibilities of Fed action in the near-future and eventually drive the greenback.

Technical levels to watch

From current levels, although the recovery momentum could get extended but is likely to confront a strong resistance near 102.40-50 region, which if conquered should continue boosting the pair further towards 104.00 round figure mark in the near-term.

On the flip side, session low near 101.70 seems to protect immediate downside, below which the pair seems to immediately drop to 101.20 support before breaking through 101.00 mark to test 100.85 support area.