USD/JPY continues rangebound trade with large expiries at play today
USD/JPY price action continues to pivot around the 110.00 handle
The pair continues to bounce between downside support around 109.75 and topside resistance around 110.15-25 since late Friday trading. As risk sentiment remains rather cautious and uncertain to begin the week, there's not much of a breakout in the pair on either side despite the fact that sellers continue to maintain near-term control.
Risk tones are looking a bit more optimistic today with bond yields recovering off their lows while equities are mostly trading higher. That said, Chinese stocks are extending declines seen since yesterday which may give investors and traders some consideration that a risk rally isn't in the offing just yet.
However, for USD/JPY there's also the fact that there are large expiries resting between 110.10-30 today and that may very well keep price action contained around these levels until they roll off later at 1400 GMT.
Unless we see a dramatic risk-on rally or markets start to catch the jittery bug again, the pair's narrow range as highlighted above looks set to extend for yet another session.