USD/JPY price is sandwiched between the two key hourly moving averages
And that is leaving the near-term price bias undefined ahead of European trading. So far, the 76.4 retracement level of the recent swing lower is helping to limit gains but there's also the 200-hour MA (blue line) lurking nearby @ 110.85. Not to mention that there are also large expiries resting at 110.70-75 today that could also be a factor in putting a lid on price action in the session ahead.
Asian equities are displaying a much calmer and positive mood while bonds remain rather cautious for the most part. Treasury yields inched lower overnight after the auction and that continues to weigh on risk sentiment and cause for market participants to be skeptical of any risk-on move this week.
With not much of note in the economic calendar for the European morning, I reckon we could see subdued price action in USD/JPY and yen pairs in general as traders will wait on Wall Street again to have their say on which direction risk will take this week.
Topside resistance is defined at the levels highlighted above, meanwhile downside support is seen at 110.33 followed by 110.15-20 and then the 110.00 handle.
