USD/JPY falls to a session low of 107.10, under its 100-hour moving average
The pair rebounded higher in overnight trading, after buyers defended a move at the 200-hour MA (blue line) once again in European trading yesterday.
The move higher came on the back of a turnaround in US equities, but stalled at 107.43 as the rebound failed to take out the 38.2 retracement level of the swing move lower this week.
Now, price action is looking back towards the downside a little to start the day as we see sellers try to shift the near-term bias back to more neutral territory on the session.
That said, the overall risk mood remains a touch more tepid with US futures sitting a tad higher by 0.3% but not showing any real signs of the risk-on wave that we saw yesterday.
I reckon we can only wait until US trading to confirm any major risk moves today.
As for USD/JPY, just be aware that there are large option expiries rolling off at 107.00 and 107.50 so that may help to contain price action in the meantime.
Otherwise, any major downside move will have to contest a break of the 200-hour MA @ 106.80 to gain further momentum while topside remains limited around 107.40-50 before further resistance is seen at the 11 May high @ 107.77.
