USD/JPY hovers just under the 200-day moving average still
With risk sentiment looking a bit heavy and sluggish today, there isn't much movement in yen pairs so far in the European morning. USD/JPY holds in a 18 pips range but sits slightly on the lower side at the moment with Treasury yields a little weaker currently. 10-year yields are down by 2.3 bps to 2.50% as risk sentiment remains rather mixed/muted since Asian trading.
I reckon it could be a case of markets starting to prepare for the US jobs report tomorrow and we may very well have to sit in a bit of a lull until then. That said, Trump is meeting with Chinese vice premier Liu He later today so just be wary of potential headlines there that could potentially give risk trades a bit of a nudge in the session ahead.
Otherwise, large expiries rolling off at 111.50 today and the 200-day MA (blue line) @ 111.49 should help to limit any upside break and prevent the bias/momentum in USD/JPY from shifting to be more bullish - without any notable headlines to support it.
Downside support is seen at 111.25 (100-hour MA) before bids at the 111.00 handle come into play as well as the 100-day MA (red line) at 110.96.
