Look for sellers against the level

Yesterday, the USDJPY fell below its 200 day moving average (green overlay line at 108.857 currently). That tilt of the bias more to the downside for the pair.

Look for sellers against the level_

The low today stalled at 108.422 before starting a rebound higher. The better tone on China/US trade has helped the tone in the pair along with higher yields and higher stocks.

The run to the upside has taken the pair to new session highs. And toward a retest of its 200 day moving average at 108.857. I would expect some sellers to lean against the level on the 1st test. If that level holds, a move back below the 108.72-736 area would give sellers more confidence.

On a break above, look for increased upside momentum with a move above the 38.2% retracement at 108.919 (that was also the low price from Mondays trade) to give an additional boost for the pair.

In the US stock market, the S&P index is just off the session highs out 3115.87. The high price came in at 3117.99 so far. The NASDAQ index is up 55.67 points at 8576.64. It's high price was up at 8584.58.

In the US debt market to year yields are up 3.2 basis points at 1.570%. 10 year yields are up 5.6 basis points at 1.770%.

The rise in stocks and rising yields are helping the USDJPY rebound.