USD/JPY moves towards testing the 100-hour moving average
US yields are posting a decent recovery on the day so far with 10-year yields now up to session highs of 2.444%, higher by 4.6 bps on the day. That is helping to keep yen pairs underpinned on the session with USD/JPY now trading at session highs close to 110.40.
The pair is encountering some resistance in the form of the 100-hour MA (red line) though and with large expiries resting around 110.10-30 today, it could help to keep price action in-check for the time being.
I reckon we will have to wait on US traders for more confirmation of a breakout from its recent consolidation phase but a move above the 100-hour MA will be a good first step for buyers to start to regain control of the pair in the near-term.
The caveat of course is that a move higher needs to be supported by better risk sentiment, which is what we're seeing so far. That said, cautious tones are very much still at play and any one sour headline could send markets back in a spiral again. Just be wary of that.
