The pair found support just under 110.00 yesterday and is staying above that to start European morning trade today
Sellers pushed the pair lower in North American trading before the Tokyo session saw yen selling once again - similar to yesterday - so will we get a rinse and repeat today?
The risk mood remains tepid to start the morning with European equities set for a weaker start and US futures have also pared earlier gains. Treasury yields are also a little weaker near flat levels so that isn't providing too much encouragement for risk trades.
For USD/JPY, price action is sort of caught in the middle as the near-term bias still favours sellers under the 200-hour MA (blue line). However, the support from yen offers during the Tokyo session is keeping price above 110.00 for now - limiting the downside.
As we move towards the latter stages of the day, I reckon risk will be a key spot to watch once again. If Treasury yields start to fall off towards 1.30%, expect that to weigh on yen pairs and push the 110.00 agenda in USD/JPY.
There is still decent support around 109.65-75 as well as 109.50 level but a break of the 110.00 level will be the first key step for sellers to drive a further downside move.
For this week, there seems to be a habit of the yen being offered during Tokyo trading so just be mindful of that whichever way the market moves today.
In that lieu, topside resistance is seen around the 200-hour MA (blue line) @ 110.63 and then nearer to 111.00 for now.
