USD / JPY Advances As Risk Tone Remains More Positive
The pair is now climbing to a session high of 106.20, approaching minor short-term resistance from the August 20 high at 106.22.
It should be noted that the buyers have now managed to move back above the 200 hour MA (blue line) @ 106.04, making the short term bias more bullish at this time.
Yen pairs are looking a little higher across the board to start the session as the currency remains weaker with Treasury yields pushing higher. This comes in the midst of the market’s more positive risk tone to start the day.
10-year rates are up almost 2bp to 0.674% and this is keeping the yen under pressure.
Returning to USD / JPY, the 106.22 level will be the first key resistance point to watch and beyond that, buyers may look to the 106.50-60 region before potentially considering another retest of the handle 107.00.
As far as sellers are concerned, the first key step is to bring the price back below 106.00 and below the 200 hour MA to regain some short term control.
The 100 hour MA (red line) was a key level that limited yesterday’s bearish movement so it will be one to watch if price action returns to the downside in the sessions ahead.