USD/JPY stabilizes at mid-range as sentiment improves

USD/JPY edged a tad lower at the beginning of the New York session, but overall continued to trade at mid-daily range after sharp swings seen throughout the day, with risk sentiment dominating price action.

USD/JPY came under strong pressure and lost over a hundred pips from a high of 101.77 to a low of 100.74, before stabilizing around 101.25 over the last hours. At time of writing, the pair is trading at 101.20, still 0.2% above its opening price.

Concerns about the contagion effect emanating from Deutsche Bank,  Germany's largest bank weighed on sentiment.  Deutsche Bank stock fell to a new record low during the European session but turned positive for the day afterwards.

During the Asian session, Japan released a series of mixed data, including CPI, employment, industrial output and spending figures. 

USD/JPY levels to consider

In terms of technical levels, next supports are seen at 100.64 (Sep 29 low), 100.07/00 (Sep 27 low/psychological level), 99.53 (Aug 16 low) and 98.98 (Jun 24 low). On the flip side, resistances could be found at 101.84 (50-day SMA), 102.77 (Sep 21 high) and 103.35 (Sep 14 high).