USD/JPY reverses course and heads higher on the day
Not much on the wires as even yields are looking subdued, but USD/JPY is building momentum once again to try and make a run against the 110.00 level.
This comes after the pair held on to support at the 100-day MA (red line) earlier in the week. Currently the pair is testing the 50.0 retracement level @ 109.93 and the 110.00 figure level, and it is a crucial one as buyers failed to break above these levels at the start of the month – which resulted in the decline towards the 100-day MA mentioned.
In terms of upside levels, the 109.93 to 110.20 level will be seen as a crucial resistance area for the pair as the latter is where the 200-day MA (blue line) is at.
A break of the 200-day MA will see a fresh bullish bias in the pair on the daily chart, and is going to fuel a run higher towards the 110.84 level first before moving back towards the next key resistance level near 112.00.
This will be one of the more interesting pairs to watch for today aside from cable.