USD/JPY knocks on the door of the 200-day moving average
With risk sentiment more optimistic today, USD/JPY is trading a little higher close to the 111.50 level. But the key level to watch out for will be that 200-day MA (blue line) @ 111.48. Should buyers manage a break above that, price bias/momentum will turn more bullish.
That said, we have seen breaks above that key level last month only to be capped by offers and resistance around 112.00.
The figure level will once again be key to limit any upside run today as well with large expiries rolling off there ($1.8 billion). Meanwhile, downside support remains closer to the 111.00 handle but there's also large expiries at the 111.15 level to watch out for ($2.3 billion).
Those two levels will define the price range for today in USD/JPY and risk sentiment will be the determinant as to which side it will trade closer towards. All that considered, the 200-day MA is also another level to watch out for ahead of the close.
