USD/JPY slides to 104.40, 105.00 caps recovery

With one day left ahead of the critical UK-EU referendum traders seem to position themselves cautiously as fresh bids seems to have emerged for the safe-haven currency Yen, with the USD/JPY pair now sliding to session low.

Following Tuesday's tepid bounce to 105.00 handle, the pair attracted fresh offers on Wednesday amid uncertainty surrounding the final outcome of Thursday's Brexit referendum. At the time of reporting, the pair was trading around 104.40 level, down 0.3% for the day.

A broad based selling pressure surrounding the US Dollar also seems to weigh on the pair as markets now await for the release of US existing home sales data and the Fed Chair Janet Yellen's second round of testimony on the Semiannual Monetary Policy Report before the House Financial Services Committee, later during NY session. 

Technical levels to watch

Failure to extend its recovery momentum and a subsequent drop back below 104.00 handle support might increase the pair's vulnerability to break through recent lows support near 103.60-55 zone and head towards testing 103.00 round figure mark.

On the flip side, upside momentum might continue to confront immediate resistance around 105.00 handle, above which the pair seems all set to extend its recovery trend towards testing a previous important support, now turned immediate strong resistance, near 105.50 area.