USD/JPY has been on the rise in April
The yen is a little weaker as we start the day, and that has seen USD/JPY make another run at the 61.8 retracement level on the daily chart @ 107.87. It is a level I have pointed out as a key break for a return to the upside before this, and remains a level that buyers will have to break through.
As mentioned at the start of the month, the break of the "lower lows, lower highs" pattern in the pair is one of the more crucial tells that the pair may have founds its bottom near the 105.00 level.
But to say that the pair is set to return towards 110.00 is still a little premature at this point as we have yet to break through any key hurdles. The first of which is the 107.87 level mentioned above.
The key risk event on the week for the pair will be the BOJ meeting on Friday. Although no changes is expected, and the central bank is not expected to shift the goalpost of the timing of its inflation target, but any mention of the BOJ discussing exit strategy or exit discussions could potentially cause a bit of a jolt in the yen.
In terms of levels to look out for, a break of the 61.8 retracement level will see the 100-day MA as the next key level for buyers to get above - which currently sits at 109.04. Following which will be the region of 109.93 - 110.31 (50.0 retracement level, 110 figure level, 200-day MA).
