USD/JPY trades at the highs around 108.85 currently
Buyers have reclaimed near-term control in USD/JPY as price keeps above both key hourly moving averages to start the week, but there is still more work that needs to be done.
The move higher comes after some renewed optimism in the US-China trade rhetoric but unless we see a firm move above the 109.00 handle, price is still keeping "in range" of what we have seen for the larger part of last week.
That said, the slight extension above the 200-hour MA (blue line) is encouraging but the daily chart offers a better outlook of why buyers are still seen lacking conviction:
The 200-day MA (blue line) @ 108.95 will be a key hurdle to break above alongside some offers and resistance around 109.00. Thereafter, we have daily resistance from the 61.8 retracement level @ 109.37 - which halted the upside move about three weeks ago.
As such, buyers may be in near-term control now but there are key resistance levels still keeping price from breaking higher in a more meaningful way for now.
If anything else, it shows that it is going to take more than a couple of mildly positive commentary on trade for a stronger break to come about.
