USD/JPY extends its struggle to take-out 106.20

The USD/JPY pair fails every attempt to sustain the recovery above 106 handle, as the bears appear to have lined up near 106.20 levels.

USD/JPY awaits US data for fresh impetus

The US dollar is seen building momentum to extend the recovery against its Japanese rival in the European session, with the USD/JPY pair managing to hold the 106 handle, despite sell-off in the European markets.

At the time of writing the USD/JPY pair trades modestly flat around 106.15, unable to break above 106.18/20 zone, Meanwhile, the German DAX dives -1.20%, the UK FTSE drops -0.48% and the pan-European benchmark, Euro Stoxx 50 declines -1.19%.

With the EU session’s macro releases out of the way, the major eagerly awaits the US housing starts and building permits data for a fresh push to the upside.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 106.50 (Multi-week highs). A break above the last, the major could test 106.85 (post-Brexit high). While to the downside, the immediate support is seen at 105.50/48 (5 & 50-DMA) and below that at 105.04 (Jul 18 low).