USD/JPY capped at 104.85 on broad USD selling

Monday opening trade took the USD/JPY pair higher and extending its up-move to 104.85 as receding support for ‘Brexit’ boosted risk appetite, hurting the perceived safe-haven demand for the Japanese Yen.

Despite of the global risk-on rally, the pair remained close to Friday's trading range and hasn't been able to build on to its early gains. Currently trading slight off-day's peak at 104.65, the pair remains capped on broad-based US Dollar selling pressure.

Going forward, in absence of any major market-moving, economic releases risk appetite surrounding riskier asset classes, like equities, and developments around the upcoming Brexit referendum would continue to drive the pair on Monday.

Technical levels to watch

From current levels, the pair needs to build on to its momentum above 104.80-85 resistance, above which it seems all set to extend its upward trajectory beyond 105.00 psychological mark towards testing its next major resistance near 105.50 region. Conversely, weakness below 104.50, leading to a break below 104.00 handle, might attract fresh offers, dragging the pair further below Thursday's multi-month lows support near 103.55 towards testing 103.00 round figure mark.