USD/JPY erase tepid recovery gains, drops to session low at 100.10

A fresh bout of US Dollar selling pressure seem to have emerged during European session, with the USD/JPY pair erasing all of its early tepid recovery gains to 100.50 and drop into negative territory to currently trade few pips off near session low, around 100.15-20 band. 

The pair got an initial boost from a broad based greenback recovery on the back of Tuesday's better-than-expected release of new home sales data, which reinforced optimistic view of a sharp rebound for the US economy in third quarter. The recovery, however, turned out to be short-lived and the pair came under renewed selling pressure to move dangerously close to breaking below 100.00 psychological mark. 

On the economic data front, today's release of existing home sales data from the US might provide some immediate impetus. However, markets participant await for speech from the Federal Reserve Chairwoman Janet Yellen for fresh clues on the US central bank's near-term monetary policy outlook, which would enable them to determine the pair's near-term trajectory. 

Technical levels to watch

On the downside, 100.00 mark remains immediate strong support to defend, which if broken decisively is likely to accelerate the pair's downslide towards 99.60-55 intermediate support before aiming towards retesting Brexit lows support near 99.00 round figure mark.

Meanwhile on the upside, 100.50 level now seems to have emerged as immediate resistance, above which the momentum is likely to get extended immediately towards 100.75-80 strong horizontal resistance. Although, recovery beyond 100.80 strong resistance could get extended beyond 101.00 handle but is likely to be capped at an important resistance near 101.50 region.