USD/JPY turns mildly lower at 101.20 amid thin liquidity

The USD/JPY pair has been confined in a 50-pips narrow trading band and is currently trading with marginal loss around 101.20 level.

The pair's attempted tepid rebound to 101.50 region during Asian session on Thursday got sold into amid thin liquidity conditions on the back of Japanese holiday in observance of Mountain Day. 

Extending its weakness for second consecutive day, the pair on Wednesday dipped below 101.00 handle to erase all of its strong NFP-led recovery gains. The pair found a temporary support around 101.00 level and bounced off few pips from session low.

However, lack of follow through buying interest seems to raise skepticism over possibilities of any meaningful rebound and thus, increases the pair's vulnerability to continue drifting lower.

Technical levels to watch

On the downside, 101.00 round figure mark remains immediate support to watch for, below which the pair seems to head back towards testing 3-week lows support near 100.70-65 region before darting towards the very important 100.00 psychological mark support.

On the flip side, recovery momentum above 101.50 session high resistance could get extended towards 101.85 horizontal resistance, above which the pair seems to reclaim 102.00 handle and head back towards recent daily closing highs resistance near 102.40 region.