USD/JPY slides further to retest 102.00 handle

Reemergence of global risk aversion sentiment is benefitting the safe-haven appeal of the Japanese currency, with the USD/JPY pair extending its reversal from last week's high of 103.40 and has now dropped back to 102.00 handle.

The post-Brexit sharp recovery in global equity markets seems to have stalled, with most Asian equity markets trading in negative territory on Tuesday and boosting demand for the traditional safe-haven currencies - like the Japanese Yen. 

Moreover, traders seem to have turned cautious as central bank's regain investors’ attention as we now look forward to BoE's Financial Stability Report and BoE Governor Mark Carney's assessment of the same, later during European session on Tuesday. On Wednesday, traders will have to confront the release of FOMC meeting minutes, which is expected to reveal dovish outlook and might continue to weigh on the greenback. 

Technical levels to watch

From current levels, 102.00-101.90 area seems to act as immediate support, which if broken decisively seems to turn the pair vulnerable to drift back towards 101.50-40 intermediate support before sliding further below 101.00 handle towards testing its next major support near the very important 100.00 psychological mark.

Conversely, momentum above 103.00 round figure mark, and a subsequent strength above 103.50 resistance, seems to boost the pair back beyond 104.00 level, towards testing its next major resistance near 104.55-65 area.