USD/JPY continues to hug the 108.00 handle in the European morning
A slight nudge higher in yields helped the pair move up to 108.12 earlier but since then yields have come back down and the pair moves back towards the 108.00 handle again.
Price is keeping a break below the 100-day MA (red line) for now and that means the bias is still more bearish. However, sellers need a little bit more push to firmly get past support around 107.89-93 from the 1 November low.
That will help to open up more momentum to the downside but for now, sellers are struggling despite the softer risk mood in markets.
There is no doubt that any major escalation in US-Iran tensions could see more bids in the yen but if the situation stays more tepid like it is now, things are a bit more complicated.
Looking at other yen pairs for some context, GBP/JPY is also offering some support as price is keeping above the 23 December low @ 141.17 - a level highlighted on Friday.
As such, yen buyers (XXX/JPY sellers) need a little bit more push to try and establish more momentum from hereon. Otherwise, if US-Iran tensions start to show some signs of easing, these support levels will offer great value for an upside trade and an area for buyers to easily jump in.
