USD/JPY ran stops above 108.00 in trading yesterday
The move higher yesterday came right after European midday, where the pair jumped from 107.80 to 108.40 before buyers gathered enough momentum to keep a break above its key daily moving averages seen @ 108.31-39 currently.
Prior to that, the pair has been rather lackadaisical with the dollar and yen moving in lockstep as both currencies weakened together amid the continued rally in risk.
That kept price action in USD/JPY stuck around 107.00 to 108.00 but the breakout yesterday holds more technical significance now.
Keep above the key daily moving averages @ 108.31-39 and buyers will remain in control and that is the risk level in terms of chasing a move higher in the pair towards 109.00 and potentially the 6 April high @ 109.38.
As for sellers, they have to work their way back under the key daily moving averages before searching for a move back under 108.00 to bring back the previous range.
In terms of fundamentals, both the dollar and yen continue to be similarly affected - for the most part - by the same range of factors since risk sentiment remains the ultimate driver of the market over the past few weeks.
The fact that Treasuries haven't been a reliable market indicator over the past two months i.e. rangebound also doesn't really help with trading sentiment in the pair:
As such, technicals are the best guide for now if you're looking to focus on any moves here.
