USD/JPY sits near the highs at 109.03
The Nikkei has bounced off the lows for the day and US yields are sitting nicely at 3%, and that's helping to lift JPY pairs on the day despite a quiet session for the most part so far.
The 100-day MA (red line) @ 108.98 will be a key level to watch for at the daily close today. If buyers are able to hold a close above, it bodes well for a retest of the 110.00 psychological level.
That to me, will be the bigger test for buyers as there is a confluence of support levels between the 50.0 retracement level @ 109.93, the psychological figure level at 110.00, and the 200-day MA @ 110.28.
Those levels will act as a key resistance region for buyers, and it's an area that helps to define risk for sellers. While Japanese exporters are surely not complaining, it's now up to the BOJ to follow through on the week.
Should they stick to the usual script, there is no reason why the recent momentum should halt. The jitters encountered by equities aren't the same as the ones in February despite yields actually breaking 3% now.
Volatility remains well below that of February and investors have had time to digest the fact that yields are heading higher regardless. Although earnings beats have done little to halt declines on the week, we're not seeing the same kind of fallout just yet and that means there is no reason to chase safe haven assets - like the yen - for the time being.
Looking at the hourly chart, the signal is still bullish and as long as buyers can hold above the 100-hour MA, there is no reason why the near-term momentum should dissipate:
