USD/JPY heads back towards a test of the 100-hour moving average
Wall Street may have pulled off an impressive rebound in overnight trading but Asian equities are having none of it as the session starts to enter its sunset stage today. Although the Nikkei is up by 1% on the day, it's trading nearer to the lows for the session and Chinese equities continue to struggle to stay afloat ahead of the final hour of trading.
Even E-minis are beginning to slip a little lower after staying near flat levels for majority of the session so far:
That is leading to some slight jitters in currencies as the yen starts to gain some traction. USD/JPY now moves back towards a test of the 100-hour MA (red line) @ 112.12 with the 112.00 level also eyed by sellers at the moment. But the key to the upside momentum in the pair rests in the trendline support below:
As long as price continues to hold above that, the upside momentum in the pair remains intact. Today, that support level sits at around 111.80 so that will be the key level to watch out for in terms of any breakdown in technicals for USD/JPY.