USD/JPY keeps higher on the day, trades at 108.30 levels currently
The pair has trended lower since the start of April trading but is looking to turn a corner this week after buyers held a defense of the 38.2 retracement level of the swing higher for the year @ 107.77 on the daily.
The key trendline support for the year also somewhat held close to 108.00 and buyers are wrestling back some near-term control as well with the dollar keeping slightly firmer over the past few sessions. A look at the hourly chart:
The bounce today sees buyers push back above the 200-hour moving average (blue line) but are still finding it tough to shake off that level, seen now @ 108.25.
The 23.6 retracement level of the downswing in April @ 108.30 also adds to some resistance on the daily so that adds another layer to test buyers’ resolve today.
A firm break above those levels will open up the path towards testing some minor resistance near 108.50-54 before getting to the 38.2 retracement level @ 108.81.
It has been a relatively quiet session so far with traders having little headlines and data releases to work with. The dollar holds a little firmer but the technicals are still doing the work as we await key risk events to follow later on in the week.
As for USD/JPY, a lot still rides on the direction of Treasury yields so keep that in mind when looking at the charts as well during the next few days.