USD/JPY closes in on a test of the 200-hour moving average
As the dollar is keeping firmer to start the day, USD/JPY is inching higher towards 108.00 and now nears a test of the 200-hour MA (blue line) @ 107.98.
The pair was hugging the 100-hour MA (red line) to start the day and buyers held on to the level to keep the near-term bias more neutral. For now, the 200-hour MA will now be a key focus level as a break above that will see the near-term bias turn more bullish.
Despite the solid performance in the equities space recently, USD/JPY remains largely trapped between 107.00 and 108.00 as dollar trading has been rather choppy.
As we kick start the new week, risk looks more tepid while the dollar is keeping slightly firmer but we've seen this same price action struggle to gather further momentum as evident towards the latter stage of last week.
But perhaps a potential break of the 200-hour MA will give buyers some incentive to extend the momentum and pursue a daily close above 108.00.
In that regard, the 200-day moving average at 108.33 will also be a key level to be mindful about if we do see price action start to hold above the figure level.
In any case, I would say it is still early in the day to say what the latest push in the dollar will amount to but the risk levels can be clearly defined and limited as per the above.
