USD/JPY crawls back up to 108.38 after falling to a low of 108.17 earlier
With that, price is moving back above the 200-hour MA (blue line) and that sees the near-term bias in the pair be more neutral for the time being. It must be noted that sellers are still poised though, with the 100-hour MA (red line) @ 108.47 and offers around 108.50 likely to keep pressure to the downside as we begin European trading.
General sentiment among equities are softer with yields also a little lower to start the day. E-minis are down by 0.2% while US 10-year yields are down by 1.2 bps to 2.108%. That’s helping to keep the yen a little bid since Asia Pacific trading.
Essentially, USD/JPY has been bouncing in between 108.20-60 since yesterday as traders continue to try to find an edge or an angle to work with. Global trade tensions are still present but there hasn’t been much fresh development since the weekend for traders to really capitalise on in the new week.
With little on the economic calendar today as well, I reckon tomorrow’s US retail sales data will be key in determining where markets are headed towards as it would also affect sentiment towards the Fed as well.
For today, topside resistance in USD/JPY is seen closer to 108.50-60 before the week’s high at 108.80 comes into play. Meanwhile, downside support levels are seen closer to 107.80-00 with decent-sized expiries lurking around 107.90-00 as well.